William Blair analyst Trevor Romeo has maintained their neutral stance on RHI stock, giving a Hold rating today.
Trevor Romeo has given his Hold rating due to a combination of factors impacting Robert Half’s performance. The company’s first-quarter results showed significant shortfalls in both revenue and earnings, missing consensus estimates. This was exacerbated by a restructuring charge that further reduced earnings per share. Additionally, the guidance for the second quarter fell short of expectations, indicating ongoing challenges.
Despite these setbacks, there are positive aspects worth noting. Protiviti, a segment of Robert Half, demonstrated organic growth and maintained a strong pipeline, particularly in international markets. The company has also implemented cost-saving measures, expected to save $80 million annually, which should improve margins over time. However, the overall margin performance across segments was disappointing, and it is anticipated that margins will only improve significantly when revenue growth returns. These mixed factors contribute to the Hold rating, as the company navigates through current uncertainties.
In another report released today, Barclays also maintained a Hold rating on the stock with a $45.00 price target.