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View All NewsRobert Half’s Q2 revenue up 6%, but growth decelerates
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported revenue rose 5.7% in the second quarter, but the company noted in a conference call with analysts that revenue growth decelerated globally in the company’s temporary and consulting staffing division during the second quarter. June revenue rose 3.7% year over year on a same-billing day, constant currency basis compared to an increase of 4.5% for the full quarter. Revenue growth in the first two weeks of July was up 2.8% year over year.
Global permanent placement revenue growth rates also decelerated, rising 1.6% year over year on a same-billing day, constant currency basis in June compared to growth of 2.1% for the full second quarter, according to the conference call with analysts. Permanent placement revenue fell 17.6% year over year in the first three weeks of July.
| (US$ thousands) | Q2 2016 | Q2 2015 | % change | Q2 2016 constant currency (same billing days) |
| Net service revenues | $1,344,160 | $1,272,058 | 5.7% | 4.9% |
| Gross margin | $556,993 | $530,502 | 5.0% | |
| Gross margin percentage | 41.4% | 41.7% | ||
| Net income | $91,616 | $89,706 | 2.1% |
Quote
“The demand for skilled talent remains a consistent theme for us,” Chairman and CEO Harold M. Messmer Jr. said in a conference call with analysts. “For a number of years now, many of our specialty areas have had unemployment rates of less than half the overall rate of unemployment in the United States. The unemployment rate for accountants and auditors is just 2.2%, and for software developer it is just 1%, according to recent data from the Bureau of Labor Statistics.”
Revenue by segment
| (US$ thousands) | Q2 2016 | Q2 2015 | % change | Q2 2016 constant currency (same billing days) |
| Accountemps | $460,242 | $429,533 | 7.1% | 6.5% |
| OfficeTeam | $246,391 | $242,102 | 1.8% | 0.6% |
| Robert Half Technology | $168,605 | $165,618 | 1.8% | 0.9% |
| Robert Half Management Resources | $156,845 | $142,349 | 10.2% | 9.4% |
| Robert Half Finance and Accounting | $113,439 | $110,583 | 2.6% | -- |
| Protiviti | $198,638 | $181,873 | 9.2% | 8.3% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates | |||||||||
| 2015 | 2016 constant currency (same billing day) | ||||||||
| Q1 | Q2 | Q3 | Q4 | 2016 | |||||
| Global | Q1 | Q2 | Q1 | Q2 | |||||
| Accountemps | 8.0% | 6.6% | 4.3% | 5.8% | 8.4% | 7.1% | 8.3% | 6.5% | |
| OfficeTeam | 9.5% | 6.9% | 4.8% | 4.1% | 4.2% | 1.8% | 3.7% | 0.6% | |
| Robert Half Technology | 16.2% | 16.6% | 13.3% | 9.6% | 6.8% | 1.8% | 6.2% | 0.9% | |
| Robert Half Management Resources | 10.4% | 2.0% | -2.4% | 4.0% | 7.5% | 10.2% | 7.7% | 9.4% | |
| Temporary and consultant staffing | 10.0% | 7.5% | 4.8% | 5.7% | 7.0% | 5.4% | 6.7% | 4.5% | |
| Permanent placement staffing | 6.2% | 7.5% | 8.2% | 5.1% | 8.0% | 2.6% | 8.6% | 2.1% | |
| United States | |||||||||
| Temporary and consultant staffing | 14.8% | 12.4% | 9.9% | 9.2% | 8.5% | 4.6% | 7.3% | 3.5% | |
| Permanent placement staffing | 15.6% | 18.7% | 16.2% | 11.5% | 12.9% | 3.8% | 11.6% | 2.7% | |
| International | |||||||||
| Temporary and consultant staffing | -6.0% | -9.3% | -12.8% | -7.2% | 0.5% | 8.6% | 4.5% | 8.9% | |
| Permanent placement staffing | -9.8% | -11.9% | -7.3% | -7.8% | -2.8% | 0.3% | 2.0% | 0.8% | |
Guidance
The company forecasts third-quarter revenue of $1.335 billion to $1.395 billion — a year-over-year increase of 4.0% at the midpoint of the range.
Share price and market cap
Shares in Robert Half fell 12.68% to $36.19 in early afternoon trading today and the company had a market cap of $4.68 billion, according to Yahoo!