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 First Advantage (NASDAQ: FA) 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 4.2% since the latest earnings results.
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. This print fell short of analysts’ expectations by 3.4%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates.
“2024 was a milestone year for First Advantage as we advanced our strategy with the transformational acquisition of Sterling,” said Scott Staples, Chief Executive Officer.
First Advantage pulled off the fastest revenue growth and highest full-year guidance raise, but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 0.9% since reporting and currently trades at $14.13.
Read our full report on First Advantage 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 scored the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $40.86.
Is now the time to buy Barrett? Access our full analysis of the earnings results here, it’s free.
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, in line with analysts’ expectations. It was a slower quarter as it posted a miss of analysts’ EPS estimates.
Robert Half delivered the slowest revenue growth in the group. As expected, the stock is down 21.7% since the results and currently trades at $54.12.
Read our full analysis of Robert Half’s results here.
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 topped analysts’ expectations by 2.8%. Taking a step back, it was a satisfactory quarter as it also logged an impressive beat of analysts’ EPS estimates.
The stock is up 9% since reporting and currently trades at $67.99.
Read our full, actionable report on Korn Ferry here, it’s free.
ManpowerGroup (NYSE: MAN)
Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE: MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.
ManpowerGroup reported revenues of $4.4 billion, down 5% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ EPS estimates.
The stock is down 4.4% since reporting and currently trades at $57.71.
Read our full, actionable report on ManpowerGroup here, it’s free.
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