Staffing Challenges and Post-Covid Hiring Slowdown Hit Robert Half (RHI), According to BNP Paribas

Robert Half Inc. (NYSE:RHI) is included among the 15 Dividend Stocks Paying 4%+ Yield in 2025.

Staffing Challenges and Post-Covid Hiring Slowdown Hit Robert Half (RHI), According to BNP Paribas

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On December 5, BNP Paribas Exane downgraded Robert Half Inc. (NYSE:RHI) from Neutral to Underperform with a $22 price target. According to the firm, AI and automation don’t bode well for staffing firms, as temporary roles are 40% more likely to be at high risk. The firm also highlighted that the return to normal hiring after the Covid-related “hiring bonanza” could also be a challenge.

Robert Half Inc. (NYSE:RHI)’s recent mixed earnings reflected the above remark. The company’s services revenue of $1.35 billion was down by 7.54% on a YoY basis. Its net income came in at $43 million, declining from $65 million in the same period last year. The management highlighted that caution from clients and job seekers persisted during the quarter, which slowed down hiring and new projects. However, the company showed confidence in the weekly trends and contract talent revenues, which grew sequentially in October and November.

Robert Half Inc. (NYSE:RHI)’s cash position was also solid as the company ended the quarter with over $365 million available in cash and cash equivalents. An operating cash flow of $77 million and $20 million worth of share repurchases further highlighted the company’s financial buffer.

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Disclosure: None.