It's been a sad week for Robert Half Inc. (NYSE:RHI), who've watched their investment drop 12% to US$25.48 in the week since the company reported its third-quarter result. Robert Half reported in line with analyst predictions, delivering revenues of US$1.4b and statutory earnings per share of US$0.43, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Robert Half after the latest results.

Following last week's earnings report, Robert Half's eight analysts are forecasting 2026 revenues to be US$5.40b, approximately in line with the last 12 months. Per-share earnings are expected to grow 15% to US$1.79. Before this earnings report, the analysts had been forecasting revenues of US$5.40b and earnings per share (EPS) of US$2.20 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$35.11, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Robert Half, with the most bullish analyst valuing it at US$50.00 and the most bearish at US$25.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2026. This indicates a significant reduction from annual growth of 0.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.9% per year. It's pretty clear that Robert Half's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Robert Half's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Robert Half. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Robert Half analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Robert Half has 2 warning signs (and 1 which is significant) we think you should know about.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.