(Reuters) – Recruitment services firm Robert Half beat Wall Street estimates for third-quarter service revenue on Tuesday, as a softening macro environment boosts demand for the company’s services.
The results fan optimism about the recovery of the staffing industry marked by cooling inflation and a stabilizing labor market.
Robert Half’s service revenues fell nearly 15% to $1.56 billion in the quarter ended Sept. 30, but still came ahead of analysts’ estimates of $1.54 billion.
Shares of the company rose 1.3% after the bell.
“Gross margins remained strong due to pricing discipline and the ongoing benefit from the rising mix of revenues from higher-skilled services,” CEO Keith Waddell said.
American employers are starting to increase hiring ahead of the holiday season, creating higher demand for the services of companies like Robert Half.
Net profit dropped around 42% to $95.5 million, or 90 cents per share, in the reported quarter.
The company reported total contract talent solutions revenue of $943.1 million, down about 17% from a year ago.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
