Robert Half expects weak quarterly revenue on sluggish hiring activity, shares slip

Robert Half

30/01/2024 23:39

Jan 30 (Reuters) - Recruitment services firm Robert Half
 RHI.N  forecast first-quarter revenue slightly below Wall
Street estimates on Tuesday, hit by sluggish hiring activity.
    Shares of the Menlo Park, California-based company fell more
than 11% in after-market trading. 
    Businesses are cutting back on recruitment services as they
hire cautiously and lay off their employees to rein in costs in
an uncertain economic environment.
    "While job opening demand continues to be above historical
levels and candidate supply remains tight, the velocity of
hiring remains impacted and there is less churn in the labor
force," CEO Keith Waddell said in a post earnings call.
    The company said it expects first-quarter revenue in the
range of $1.44 billion to $1.54 billion, the mid point of which
is marginally below analysts' average estimate of $1.50 billion,
according to LSEG data.
    Robert Half's fourth-quarter services revenue fell 15% to
$1.47 billion, from a year earlier. However, it came in-line
with analysts' average estimate. 
    For the three months ended Dec. 31, the company reported net
income of $87 million, or 83 cents per share, compared with net
income of $148 million, or $1.37 per share, a year earlier.


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