Robert Half Posts Robust Q4 - Analyst Blog

Robert Half International Inc. (RHI) a leading global staffing and risk consulting services provider, has reported solid fourth quarter and full fiscal 2010 results.

Robert Half registered net income of $24.8 million or 17 cents a share in the quarter, compared with $13.5 million or 9 cents a share in the earlier year quarter. The company posted a robust 84% year-over-year growth. Earnings per share were a penny above the Zacks Consensus Estimate.

Profits were primarily driven by continued demand for professional staffing and consulting services. Further, each of the business segments reported both sequential and year-over-year revenue growth in the fourth quarter.

For the first quarter 2011, the company forecasts earnings in the range of 13 cents to 18 cents a share. The current Zacks Consensus Estimate of 23 cents is well above the guidance range.

During the quarter, Robert Half's total revenue advanced 15% to $852 million, compared with $737 million in year-ago period. The company projects revenues of $850 million−$900 million for the first quarter 2011.

Operating income jumped 91.2% to $43.0 million in the quarter from $22.5 million in the fourth quarter of 2009.

Segment Details

 All the six segments reported positive revenue growth. Revenue at Accountemps increased 11% to $319.0 million, while that in Office Team surged 23% to $174.3 million. Revenue at Robert Half Technology expanded 21% to $92 million and Robert Half Management Resources grew 14% to $103 million. Robert Half Finance and Accounting and Protiviti division revenues grew 30% and 8% to $59 million and $104 million in the quarter, respectively.

Financial Update

Robert Half generated operating cash flow of $176 million in fiscal 2010. During the year, the company repurchased shares worth approximately $96 million.

Capital expenditures were to the tune of $35 million and the company paid $77 million in dividends.