Please ensure Javascript is enabled for purposes of website accessibility

Why Robert Half's Shares Dropped Today

By Travis Hoium - Apr 24, 2013 at 4:55PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of staffing company Robert Half International (RHI -0.21%) fell 10% today after the company reported earnings.

So what: Revenue was flat in the first quarter at $1.02 billion, falling just short of the $1.05 billion estimate. Earnings per share did jump 18% to $0.40, but this also fell a penny short of expectations.  

Now what: The job market isn't strong, and that's dragging on results across the industry. Part of the challenge is that Robert Half's shares are trading at 20 times trailing earnings, which indicates that investors are looking for some growth in the future. If the company isn't growing, I'm not buying, which is keeping me out of shares today.

Interested in more info on Robert Half International? Add it to your watchlist by clicking here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Robert Half International Inc. Stock Quote
Robert Half International Inc.
RHI
$88.42 (-0.21%) $0.19

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.