RHI Stock Forecast & Price Target

Robert Half Inc. has the potential to return to approximately $7 billion in annual revenue, bolstered by a projected margin recovery to around 13%, which would result in an EBITDA exceeding $900 million. The company's strategic cost-cutting measures have prioritized the retention of revenue-generating roles, with management indicating a possible upside of 20% to 30% based on historical productivity levels. Additionally, despite challenges in the conversion cycle for its consulting subsidiary, Protiviti, management reported that the weighted pipeline still reflects year-over-year growth, further supporting a positive financial outlook.

Robert Half Inc. experienced an 8% year-over-year decline in revenues, reaching $1.35 billion, which fell short of consensus estimates of $1.41 billion. The deteriorating performance was further highlighted by a 14% decrease in Contract Talent Solutions and a 10% drop in Permanent staffing, with only the Protiviti segment showing modest growth at 3%. Revenue guidance indicates a continued challenging environment, projecting a further decline of 10% to 14% in Talent Solutions while expecting only a slight uptick of 1% to 4% in Protiviti's revenues.