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Investing.com -- Shares of Robert Half International (NYSE: NYSE:RHI) tumbled 7.5% as the company reported fourth quarter earnings and revenue that fell short of Wall Street expectations. The staffing and consulting firm's earnings per share (EPS) of $0.53 were $0.02 lower than the analyst consensus of $0.55. Revenue for the quarter also missed the mark, coming in at $1.38 billion against the expected $1.41 billion.
The company's financial results for the quarter ending December 31, 2024, showed a decline compared to the same period in the previous year. Net income dropped from $87 million, or $0.83 per share, to $54 million, or $0.53 per share. Revenue saw a decrease from $1.473 billion in the fourth quarter of 2023 to $1.382 billion in the same quarter of 2024. Yearly figures also reflected a downward trend, with net income for the year ending December 31, 2024, at $252 million on revenues of $5.796 billion, a fall from $411 million and $6.393 billion, respectively, in the prior year.
M. Keith Waddell, president and chief executive officer at Robert Half, remarked that the fourth quarter revenues and earnings were largely as anticipated, with Protiviti, the company's global consulting arm, reporting year-on-year revenue growth for the second consecutive quarter. He also noted the stability in contract revenues and expressed optimism about the company's position to leverage U.S. business confidence post-elections.
JPMorgan analyst Andrew C. Steinerman responded to the earnings report by lowering the price target on Robert Half to $65.00 from $69.00 while maintaining a Neutral rating. Steinerman highlighted that the first quarter guidance for 2025 suggests a modest improvement over his expectations, with total company revenues projected to be down about -3% year-on-year on a constant currency, same day basis. However, he added a cautious note on the margin guidance for the first quarter, stating, "... 1Q25 margin guide looked light to us, which perhaps could be conservative." Steinerman also touched on the broader industry debate regarding the shape of the recovery in temporary help services.
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