Robert Half's first-quarter revenue drops on cautious hiring activity

Robert Half

25/04/2024 23:41

April 25 (Reuters) - Recruitment services firm Robert
Half  RHI.N  posted a drop in its first-quarter revenue on
Thursday, on cautious hiring activity by its clients in an
uncertain economy.
    Shares of the Menlo Park, California-based company fell more
than 4% in after-market trading.
    The company's revenue fell about 14% to $1.48 billion,
compared with analysts average estimate of $1.49 billion,
according to 10 analysts polled by LSEG.
    "Client and candidate caution continues to impact hiring
activity and new project starts on a global basis," CEO Keith
Waddell said in a statement.
    Waddell added that the clients are budget-sensitive and very
selective in their hiring activities, including the approval of
new projects. 
    Even as the United States labor market has remained
resilient, companies are hiring cautiously, while several firms
have resorted to layoffs in a bid to rein in costs.
    U.S. layoff announcements rose 7% in March to the highest
since January 2023, led by technology and government-sector job
cuts, though cuts announced year to date are down 5% amid a
still-strong job market, according to a report by outplacement
firm Challenger, Gray & Christmas earlier this month.
    The company expects second-quarter revenue in the range of
$1.45 billion to $1.55 billion, compared with analysts' average
expectations of $1.53 billion. 
    For the three months ended March 31, the company posted net
income of $64 million, or 61 cents per share, down from $122
million, or $1.14 per share from a  year earlier.

 (Reporting by Jaspreet Singh in Bengaluru; Editing by Shailesh
Kuber)
 ((Jaspreet.Singh@thomsonreuters.com; https://twitter.com/i_jass;))