Why Barrett Business Services' Shares Popped Today
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 human resources company Barrett Business Services jumped 20% today after it released earnings.
So what: Net revenue jumped 33% to $148.0 million, and net income was up 55% to $9.0 million, or $1.21 per share. Analysts only expected $1.07 per share in earnings, so results were well ahead of expectations.
Now what: Management said that a high retention rate and strong referrals are helping grow the business, and another 30% in revenue growth is expected next quarter. That bodes well for the company long term and, with shares trading at 25 times forward earnings estimates, I think there's value left in the stock. If estimates are raised to reflect the new operating conditions, it could be another catalyst for the stock.
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The article Why Barrett Business Services' Shares Popped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
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