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View All NewsRobert Half’s Q3 revenue up 2%, flattening seen
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported revenue rose 2.0% in the third quarter and was up 2.4% on a same billing day, constant currency basis. However, the company reported a flattening revenue growth began in July as well as a trend in client companies taking longer to make hiring decisions
| (US$ thousands) | Q3 2016 | Q3 2015 | % change | % change on a constant currency, same billing day basis |
| Net service revenue | $1,338,541 | $1,312,718 | 2.0% | 2.4% |
| Gross margin | $552,509 | $549,801 | 0.5% | |
| Gross margin percentage | 41.3% | 41.9% | ||
| Net income | $90,569 | $96,725 | -6.4% |
Quote
“Now on the pace of deceleration, I would say that July — we actually ended July stronger than we began it,” Chairman and CEO Harold Messmer Jr. said in a conference call with analysts. “We were encouraged by that. August wasn’t bad. But then September, where we usually start getting a sequential lift in September we did not see the lift that we typically get. Instead it was sequentially about flat. And then again, traditionally we get even more lift yet again in October and we did not see that lift either. So it is essentially sequential flattening starting in July rather than the lift that we typically see in September and early October.”
Revenue by segment
| (US$ thousands) | Q3 2016 | Q3 2015 | % change | % change on a constant currency, same billing day basis |
| Accountemps | $452,338 | $434,152 | 4.2% | 4.9% |
| OfficeTeam | $245,445 | $249,087 | -1.5% | -1.3% |
| Robert Half Technology | $167,566 | $170,211 | -1.6% | -1.4% |
| Robert Half Management Resources | $150,899 | $146,372 | 3.1% | 3.7% |
| Robert Half Finance and Accounting | $105,117 | $110,748 | -5.1% | -- |
| Protiviti | $217,176 | $202,148 | 7.4% | 7.8% |
Revenue growth by geography and temp/perm
| Year-over-year revenue growth rates (constant currency, same billing day basis) | ||||||
| 2015 | 2016 | |||||
| Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | |
| Global | ||||||
| Accountemps | 10.1% | 7.6% | 7.5% | 8.3% | 6.5% | 4.9% |
| OfficeTeam | 10.8% | 8.3% | 5.8% | 3.7% | 0.6% | -1.3% |
| Robert Half Technology | 18.8% | 15.4% | 10.2% | 6.2% | 0.9% | -1.4% |
| Robert Half Management Resources | 7.9% | 2.9% | 7.1% | 7.7% | 9.4% | 3.7% |
| Temporary and consultant staffing | 11.3% | 8.3% | 7.4% | 6.7% | 4.5% | 2.1% |
| Permanent placement staffing | 13.0% | 13.6% | 8.2% | 8.6% | 2.1% | -4.5% |
| United States | ||||||
| Temporary and consultant staffing | 12.4% | 9.8% | 8.2% | 7.3% | 3.5% | 0.6% |
| Permanent placement staffing | 18.6% | 16.1% | 10.5% | 11.6% | 2.7% | -5.0% |
| International | ||||||
| Temporary and consultant staffing | 7.7% | 3.1% | 4.4% | 4.5% | 8.9% | 8.8% |
| Permanent placement staffing | 3.1% | 8.9% | 3.5% | 2.0% | 0.8% | -3.4% |
Guidance
The company forecasts fourth-quarter revenue of $1.25 billion to $1.31 billion.
Share price and market cap
Shares in Robert Half fell 6.76% to $36.81 in early afternoon trading today, and the company had a market cap of $4.72 billion, according to Yahoo.