Robert Half beats quarterly revenue estimates on hiring recovery

Robert Half

24/10/2023 22:11

Oct 24 (Reuters) - Recruitment services firm Robert Half
 RHI.N  beat Wall Street estimates for third-quarter service
revenue on Tuesday, as a softening macro environment boosts
demand for the company's services. 
    The results fan optimism about the recovery of the staffing
industry marked by cooling inflation and a stabilizing labor
market. 
    Robert Half's service revenues fell nearly 15% to $1.56
billion in the quarter ended Sept. 30, but still came ahead of
analysts' estimates of $1.54 billion.
    Shares of the company rose 1.3% after the bell.
    "Gross margins remained strong due to pricing discipline and
the ongoing benefit from the rising mix of revenues from
higher-skilled services," CEO Keith Waddell said. 
    American employers are starting to increase hiring ahead of
the holiday season, creating higher demand for the services of
companies like Robert Half. 
    Net profit dropped around 42% to $95.5 million, or 90 cents
per share, in the reported quarter. 
    The company reported total contract talent solutions revenue
of $943.1 million, down about 17% from a year ago. 

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh
Kuber)
 ((Zaheer.Kachwala@thomsonreuters.com;))