Staffing services provider Robert Half International, Inc. (RHI: Quote) reported Wednesday a profit for the second quarter that tripled from last year, boosted by revenue growth amid increases across all its operational segments. Both earnings per share and quarterly revenues breezed past analysts' expectations. Following the announcement, the company's shares surged more than 9 percent in the after-hours trading.
Staffing companies play a crucial role in meeting the requirements of companies as they expand their recruitment, and as businesses turn to accountants and other personnel for skills that go beyond traditional areas of expertise.
"This is the fifth consecutive quarter we have reported accelerating year-over-year growth rates for our consolidated revenues. Second-quarter revenues increased 22 percent from one year ago, and second-quarter income per share tripled from the year-ago period," Chairman and CEO Harold Messmer, Jr. said in a statement.
The Menlo Park, California-based provider of staffing and risk consulting services reported net income of $35.89 million or $0.25 per share for the second quarter, higher than $11.66 million or $0.08 per share in the prior-year quarter.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.
Net service revenues for the quarter grew 22 percent to $937.97 million from $769.09 million in the same quarter last year, but missed thirteen Wall Street analysts' consensus estimate of $906.85 million.
"We saw broad-based, improving demand for our professional staffing services and Protiviti both in North America and abroad. Our permanent placement and technology staffing divisions were particularly strong. The pricing environment also continued to improve during the quarter, which contributed to higher gross margins," Messmer added.
Accountemps revenues, which form the major part of the company's receipts, rose to $345.27 million from $294.52 million in the year-ago quarter, and officeTeam, revenues totaled $188.68 million, up from $150.42 million in the prior-year quarter.
Gross margin for the quarter increased to $372.29 from $289.86 million in the prior-year quarter. Meanwhile, provision for income taxes grew to $24.86 million from $10.21 million a year ago.
RHI closed Wednesday's regular trading session at $25.82, up $0.12 or 0.47% on a volume of 2.63 million shares. The stock further gained $2.44 or 9.45% in the after-hours trading.
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by RTT Staff Writer
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