Let’s dig into the relative performance of Robert Half (NYSE: RHI) and its peers as we unravel the now-completed Q3 professional staffing & hr solutions earnings season.

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 Q3. As a group, revenues beat analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was 1.1% below.

While some professional staffing & HR solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% since the latest earnings results.

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 $1.35 billion, down 7.5% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with EPS in line with analysts’ estimates but revenue in line with analysts’ estimates.

"Client and job seeker caution continued during the quarter, subduing hiring activity and new project starts," said M. Keith Waddell, president and chief executive officer at Robert Half.

Robert Half delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 5.8% since reporting and currently trades at $27.93.

Read our full report on Robert Half here, it’s free for active Edge members.

Best Q3: Kforce (NYSE: KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE: KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $332.6 million, down 5.9% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 27.5% since reporting. It currently trades at $31.28.

Is now the time to buy Kforce? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Insperity (NYSE: NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE: NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.62 billion, up 4% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

As expected, the stock is down 13.8% since the results and currently trades at $38.89.

Read our full analysis of Insperity’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 $729.8 million, up 7% year on year. This result topped analysts’ expectations by 1.7%. Taking a step back, it was a slower quarter as it recorded revenue guidance for next quarter slightly missing analysts’ expectations and a slight miss of analysts’ EPS guidance for next quarter estimates.

Korn Ferry delivered the biggest analyst estimates beat among its peers. The stock is up 5.4% since reporting and currently trades at $68.47.

Read our full, actionable report on Korn Ferry here, it’s free for active Edge members.

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 $4.63 billion, up 2.3% year on year. This print surpassed analysts’ expectations by 0.7%. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ EPS guidance for next quarter estimates but a significant miss of analysts’ EPS estimates.

The stock is down 22.9% since reporting and currently trades at $29.31.

Read our full, actionable report on ManpowerGroup here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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