Why Robert Half Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing agency Robert Half International (NYS: RHI) jumped as much as 12% today after the company released earnings.
So what: During the first quarter, revenue rose 15% to $1.02 billion, beating expectations of $989.1 million from analysts. Profit grew 83% to $0.34 per share, $0.06 ahead of estimates.
Now what: The United States is driving the growth with revenue increasing 19.6% from a year ago, something that might surprise some observers. The other positive trend is that job placements are up 28% versus temporary placements up 19%, a sign that the job market is recovering. Shares are now trading at 18 times forward estimates, and I think the stock has room to run as the economy improves.
Interested in more info on Robert Half? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.