RHI Stock Forecast & Price Target

Robert Half Inc is projected to potentially return to annual revenues of approximately $7 billion, with an expected improvement in margins to around 13%, indicating an EBITDA exceeding $900 million. The company has adopted cost-cutting measures while still preserving key revenue-generating roles, suggesting management anticipates a 20%-30% upside based on historical productivity levels. Additionally, despite increased uncertainty affecting the conversion cycle at its subsidiary Protiviti, the weighted pipeline has shown year-over-year growth, highlighting a positive forward trajectory for the firm.

Robert Half Inc. experienced a notable decline in revenues, reporting an 8% year-over-year decrease to $1.35 billion, falling short of consensus estimates of $1.41 billion. The staffing segments showed significant weakness, with Contract Talent Solutions and Permanent placement revenues declining by 14% and 10%, respectively, though Protiviti's revenue managed a modest 3% increase. Looking forward, revenue guidance indicates a continued downturn in Talent Solutions expected to decrease between 10% and 14%, suggesting ongoing challenges in the company's core staffing operations.