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View All NewsWorld – Robert Half reports Q1 revenue down 2% on same-billing day, constant-currency basis
Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported first-quarter revenue edged down 1.8% on a same-billing day, constant-currency basis. revenue fell 1.2% on a reported basis.
International temporary and consulting staffing revenue rose 9.4% in the first quarter while US temporary staffing and consulting revenue fell 5.6%
| (USD thousands) | Q1 2017 | Q1 2016 | % change | Q12017 constant currency (same billing days) | Q1 2017 (€ thousands) |
| Net service revenue | 1,287,370 | 1,302,625 | -1.2% | -1.8% | 1,199,005 |
| Gross margin | 525,828 | 531,972 | -1.2% | N/A | 489,735 |
| Gross margin percentage | 40.8% | 40.8% | N/A | N/A | N/A |
| Net income | 78,521 | 83,416 | -5.9% | N/A | 73,131 |
“We were pleased with our financial results for the first quarter, particularly our international staffing operations and Protiviti,” said Chairman and CEO Harold Messmer, Jr. “Return on invested capital was 29% during the quarter.” “While the US economic environment is largely stable, and the job market is strong, the hiring cycle remains uncharacteristically long as employers take more time to make hiring decisions. Recent reports show a noticeable improvement in optimism about US economic prospects, which should shorten the hiring cycle and benefit our business.”
Revenue by segment is as follows:
| (US$ thousands) | Q1 2017 | Q1 2016 | % change | Q1 2017 constant currency (same billing days) | Q3 2016 (€ thousands) |
| Accountemps | 436,539 | 448,538 | -2.7% | -3.3% | 406,575 |
| OfficeTeam | 236,179 | 240,720 | -1.9% | -2.6% | 219,968 |
| Robert Half Technology | 157,439 | 164,273 | -4.2% | -5.2% | 146,632 |
| Robert Half Management Resources | 157,449 | 155,634 | 1.2% | 0.8% | 146,642 |
| Robert Half Finance and Accounting | 103,633 | 106,289 | -2.5% | -- | 96,520 |
| Protiviti | 196,131 | 187,171 | 4.8% | 4.2% | 182,669 |
Year-over-year revenue growth rates (constant currency, same billing day) by geography and temp/perm is as follows:
| Q1 2016 | Q1 2017 | |
| Global | ||
| Accountemps | 8.3% | -3.3% |
| OfficeTeam | 3.7% | -2.6% |
| Robert Half Technology | 6.2% | -5.2% |
| Robert Half Management Resources | 7.7% | 0.8% |
| Temporary and consultant staffing | 6.7% | -2.8% |
| Permanent placement staffing | 8.6% | -3.1% |
| United States | ||
| Temporary and consultant staffing | 7.3% | -5.6% |
| Permanent placement staffing | 11.6% | -7.6% |
| International | ||
| Temporary and consultant staffing | 4.5% | 9.4% |
| Permanent placement staffing | 2.0% | 8.4% |
Robert Half also published full year results
| (US$ thousands) | FY 2016 | FY 2015 | % change | FY 2016 constant currency (same billing day) | FY 2016 (€ thousands) |
| Net service revenues | 5,250,399 | 5,094,933 | 3.1% | 10.9% | 4,890,012 |
| Gross margin | 2,160,676 | 2,114,471 | 2.2% | N/A | 2,012,367 |
| Gross margin percentage | 41.2% | 41.5% | N/A | N/A | N/A |
| Net income | 343,389 | 357,796 | -4.0% | N/A | 319,819 |
The company forecasts second-quarter revenue of $1.28 billion to $1.34 billion, a year-over-year decrease of between 0.7% and 5.1%.
In trading on Friday, Robert Half International shares closed at $47.18, down 2.77% on the day and 7.45% below its 52-week high of $50.98, set on 4 January 2017. Based on its share price the company has a market value of $6.0 billion.