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View All NewsTrueBlue total revenue falls 5% in Q3, but rises 10% in PeopleScout RPO and MSP division
TrueBlue Inc. (NYSE: TBI) reported revenue fell 5.2% in its fiscal third quarter to $660.8 million. Revenue fell 2% when excluding Amazon, formerly the company’s largest customer.
| (US$ thousands) | Q3 2017 | Q3 2016 | % change |
| Revenue | $660,780 | $697,097 | -5.2% |
| Gross profit | $172,019 | $178,395 | -3.6% |
| Gross margin percentage | 26.0% | 25.6% | |
| Net income/loss | $21,221 | $23,429 | -9.4% |
Third-quarter revenue fell 4.8% in TrueBlue’s PeopleReady segment. Revenue also fell 9.2% in its PeopleManagement segment.
However, revenue rose 10.0% in the company’s PeopleScout division, which includes recruitment process outsourcing and managed service providers operations.
In a conference call with investors, the company noted recent hurricanes had a modest positive impact on top-line results, providing a 1% lift to total revenue. TrueBlue said it has been leveraging existing client relationships in the wake of the hurricanes and using resources such as mobile technology and recruiting vans to ramp up recruiting efforts and deliver much-needed workers.
Revenue by segment
| (US$ thousands) | Q3 2017 | Q3 2016 | % change |
| PeopleReady | $414,995 | $435,783 | -4.8% |
| PeopleManagement | $196,835 | $216,834 | -9.2% |
| PeopleScout | $48,950 | $44,480 | 10.0% |
Quote
“We saw improving revenue trends across all of our segments and double-digit growth in our PeopleScout business,” CEO Steve Cooper said. “These trends combined with the continued progress of our digital strategy position us well for future revenue growth.”
Guidance
TrueBlue expects fourth-quarter revenue to be down between 8% and 10%.
Share price and market cap
Shares in TrueBlue rose approximately 14% in afternoon trading today. The company had a market cap of $1 billion.
This story has been corrected to fix errors.