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Investing.com - Goldman Sachs has reiterated its Sell rating and $27.00 price target on Robert Half (NYSE:RHI) following the company’s third-quarter results, which showed continued revenue declines and significant margin contraction. According to InvestingPro data, the stock is trading near its 52-week low of $30.84, with a steep year-to-date decline of 54%, though analysis suggests the stock may be undervalued at current levels.
The staffing firm reported broad-based revenue declines and provided a fourth-quarter outlook that falls significantly below Street expectations. Robert Half is experiencing its third consecutive year of revenue declines, reaching high-single-digit year-over-year decreases on a same-day, constant currency basis in the third quarter. Despite these challenges, InvestingPro data shows the company maintains strong shareholder returns with a notable 7.5% dividend yield and has maintained dividend payments for 22 consecutive years.
While the company observed early signs of stability in temporary staffing weekly sequential revenues during September and October, third-quarter exit rates and guidance indicate sustained significant revenue declines ahead. Goldman Sachs expects these pressures to continue due to a weakening labor market.
Robert Half’s Protiviti consulting business also reported a year-over-year decline for the first time in a year, indicating elongated sales cycles and smaller project sizes. The company is experiencing operating margin contraction from negative operating leverage as revenue continues to decline.
Goldman Sachs noted that Robert Half’s fourth-quarter earnings per share guidance came in more than 30% below consensus estimates, continuing a negative estimate revision cycle, while also highlighting artificial intelligence as a potential medium-to-longer term threat to staffing volumes. For deeper insights into Robert Half’s valuation metrics, growth potential, and extensive financial analysis, access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, Robert Half International Inc. announced its third-quarter 2025 financial results. The company reported earnings per share of $0.43, which met the expectations set by analysts. However, the revenue for the quarter was $1.354 billion, falling short of the anticipated $1.36 billion. This shortfall in revenue has been noted by investors and analysts alike. Despite the earnings meeting expectations, the revenue miss has been a point of concern. The financial results have led to increased scrutiny from the investment community. Analysts are closely monitoring Robert Half’s performance in light of these developments. The company’s ability to align with earnings expectations while missing revenue forecasts is a focal point for future analysis. These recent developments are crucial for stakeholders assessing the company’s financial health.
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