Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Korn Ferry (NYSE: KFY) and the best and worst performers in the professional staffing & hr solutions industry.
The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.
The 8 professional staffing & HR solutions stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 0.7% below.
While some professional staffing & HR solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2% since the latest earnings results.
Korn Ferry (NYSE: KFY)
With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE: KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.
Korn Ferry reported revenues of $676.5 million, flat year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
The stock is up 9.7% since reporting and currently trades at $68.39.
Is now the time to buy Korn Ferry? Access our full analysis of the earnings results here, it’s free.
Best Q4: Barrett (NASDAQ: BBSI)
Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ: BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions.
Barrett reported revenues of $304.8 million, up 10.2% year on year, outperforming analysts’ expectations by 3.8%. The business had a strong quarter with a decent beat of analysts’ EPS estimates.
Barrett achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 3.3% since reporting. It currently trades at $41.80.
Is now the time to buy Barrett? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: First Advantage (NASDAQ: FA)
Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ: FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.
First Advantage reported revenues of $307.1 million, up 51.6% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
First Advantage delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 25.6% since the results and currently trades at $13.79.
Read our full analysis of First Advantage’s results here.
Robert Half (NYSE: RHI)
With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE: RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.
Robert Half reported revenues of $1.38 billion, down 6.1% year on year. This result was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it produced a miss of analysts’ EPS estimates.
Robert Half had the slowest revenue growth among its peers. The stock is down 20.1% since reporting and currently trades at $55.28.
Read our full, actionable report on Robert Half here, it’s free.
Alight (NYSE: ALIT)
Born from a corporate spinoff in 2020 to focus on employee experience technology, Alight (NYSE: ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.
Alight reported revenues of $680 million, down 1.6% year on year. This print met analysts’ expectations. However, it was a slower quarter as it recorded a significant miss of analysts’ full-year EPS guidance estimates.
Alight had the weakest full-year guidance update among its peers. The stock is down 7.8% since reporting and currently trades at $6.17.
Read our full, actionable report on Alight here, it’s free.
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