TrueBlue Q3 adjusted profit beats estimates as revenue jumps

Trueblue

Wed 21:26

Overview
US workforce solutions provider's Q3 revenue rose 21% yr/yr
Adjusted EPS for Q3 beat analyst expectations
Company cites improved operating leverage and growth in skilled verticals

Outlook
TrueBlue did not provide specific financial guidance for the current or future periods in its press release

Result Drivers
END MARKET EXPANSION - Co said revenue and profitability gains were driven by its strategic focus on expanding into new end markets
SKILLED VERTICALS EXECUTION - Co attributed increased operating leverage to strong execution in skilled verticals
LOWER SG&A - SG&A expense declined 3% to $89.1 mln, supporting profitability

Company press release: ID:nBwqfh51a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$521 mln
$455.70 mln (2 Analysts)
Q3 Adjusted EPS
Beat
$0.33
$0.19 (3 Analysts)
Q3 EPS
 
$0.28
 
Q3 Net Income
 
$9.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for TrueBlue Inc is $9.75, about 1.7% above its November 3 closing price of $9.59
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads
Nov 2 - Upwork Q3 revenue beats analyst estimates; acquires WorkMotion to strengthen enterprise offering
Nov 2 - Germany's Amadeus Fire nine-month revenue falls on weakness in Personnel Services segment
Nov 4 - US private payrolls rise in October, ADP says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)