(NYSE:RHI) | Searching for Alpha

Robert Half Worldwide (NYSE:RHI) on Friday was downgraded to a Impartial ranking from Obese by analysts at JPMorgan after the staffing firm reported less-than-estimated earnings. Robert Half’s inventory fell as a lot as 18% to a two-year low earlier than narrowing the decline.

“RHI’s publicity to small- and mid-sized (SMB) shoppers seems extra delicate to the unsure financial surroundings than the enterprise shopper base,” Andrew C. Steinerman, analyst at JPMorgan, mentioned within the Oct. 21 report. “With rising recessionary dangers, we expect the chance/reward steadiness on the RHI inventory is skewed extra to the draw back.”

Robert Half on Thursday reported Q3 EPS of $1.53, lacking Wall Avenue’s estimates by $0.11. Income grew 10% when adjusted for foreign money swings to greater than $1.83 billion, lacking estimates by $80 million.

JPMorgan lowered its value goal for Robert Half to $76 a share from $89, primarily based on a a number of of 1 instances the financial institution’s 2024 income estimate.

“Whereas momentary staffing companies like RHI might get shortly impacted throughout an financial downturn, the are in a position to reply shortly, and usually take pleasure in great tailwind on the upswing as nicely,” in line with JPMorgan. “RHI is able to sort out any kind of candidate market and candidate provide just isn’t going to be the constraining issue for the corporate.”

Robert Half’s inventory this yr has fallen 34%, in contrast with a 23% decline for the S&P 500 Inventory Index (SP500).

Searching for Alpha columnist Daniel Jones charges Robert Half (RHI) as a Maintain on the financial uncertainties.