Robert Half reports in-line quarter, but weak guidance sends shares lower

Published 24/07/2025, 07:24
© Reuters.

Investing.com -- Robert Half International Inc. (NYSE:RHI) on Thursday reported second-quarter earnings that beat estimates, but shares fell about 2% in after-hours trading after the company issued weaker-than-expected guidance for the third quarter.

The staffing and consulting firm posted earnings per share of $0.40 for the second quarter of 2025, beating analyst consensus estimates of $0.40 and exceeding some forecasts by 8%.

Revenue came in at $1.369 billion, slightly above expectations of $1.354 billion.

Despite the earnings beat, Robert Half’s third-quarter guidance disappointed investors.

The company projected third-quarter revenue between $1.31 billion and $1.41 billion, with earnings per share between $0.37 and $0.47.

The midpoint of this earnings guidance ($0.42) fell approximately 26% below Wall Street expectations of $0.58.

The company’s Technology segment showed resilience in the second quarter, performing relatively flat compared to other business lines in Talent Solutions, which saw low double-digit percentage declines.

For the third quarter, Robert Half expects overall revenue to decline by about 8% year-over-year to $1.36 billion at the midpoint of guidance.

The company anticipates its Protiviti consulting division will grow at a low single-digit percentage rate, while Talent Solutions continues to face challenges.

Management indicated that hiring sentiment has improved sequentially, but there are no clear signs of an inflection point that would accelerate demand.

The company’s third-quarter operating margin is expected to be around 4.5%, representing a 170 basis point decline year-over-year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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