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View All NewsWorld – International markets hold back Robert Half Q3 revenue growth
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported third-quarter revenue rose 5.4% on a same billing-day, constant-currency basis.
International revenue rose by 1.4% on a same billing-day, constant-currency basis. US revenue increased by 6.6% on a same billing-day, constant-currency basis.
Currency exchange rate movements during the quarter, had the effect of decreasing reported year-over-year staffing revenues by $11 million. This reduced the group’s year-over-year reported staffing revenue growth rate by 0.9%.
| (USD thousands) | Q3 2019 | Q3 2018 | % change | Q3 2018 constant currency (same billing days) |
| Net service revenue | 1,552,132 | 1,466,266 | 5.9% | 5.4% |
| Gross margin | 646,446 | 610,468 | 11.7% | - |
| Gross margin percentage | 41.6% | 41.6% | - | - |
| Net income | 117,181 | 115,242 | 1.6% | - |
Revenue by segment
| (USD thousands) | Q3 2019 | Q3 2018 | % change | Q3 2018 constant currency (same billing days) |
| Accountemps | 489,690 | 479,415 | 2.1% | 1.6% |
| OfficeTeam | 265,941 | 265,235 | 0.3% | -0.1% |
| Robert Half Technology | 185,268 | 176,552 | 4.9% | 4.8% |
| Robert Half Management Resources | 177,562 | 162,564 | 9.2% | 12.9% |
| Robert Half Finance and Accounting | 134,582 | 129,667 | 3.7% | - |
| Protiviti | 299,089 | 252,793 | 18.3% | 14.6% |
Harold M. Messmer, Jr., chairman and CEO of Robert Half, commented, "Persistent talent shortages resulted in continued strong demand for our staffing services in the third quarter, particularly in the United States.”
"Robert Half Management Resources was the standout among our staffing lines of business, and our Protiviti subsidiary also had a very strong quarter. We are pleased with the continued momentum we are seeing in our U.S. staffing and Protiviti operations,” Messmer said.
The company also reported revenue for the nine months $4.537 billion, up from $4.319 billion last year.
Robert Half expects fourth-quarter revenue to range from $1.5 billion to $1.56 billion, which implies year-over-year revenue growth of 4% at the midpoint range on a same-day, constant-currency basis.
In trading yesterday Robert Half International shares closed at $55.89, down 0.11% on the day and 7.70% above its 52-week low of $51.90, set on 3 September 2019. Based on its current share price the company has a market value of $6.57 billion.