Overview
HireQuest Q3 revenue declines 9.8% yr/yr but beats analyst expectations
Adjusted EBITDA for Q3 beats estimates, reflecting disciplined expense management
Net income for Q3 rises to $2.3 mln, reversing a loss from last year
Outlook
HireQuest focuses on expanding geographic footprint and leveraging business model
Company sees improvement in temporary and day labor staffing despite macroeconomic uncertainty
Result Drivers
FRANCHISE MODEL STRENGTH - Despite a challenging hiring environment, HireQuest's franchise model supported profitability, according to CEO Rick Hermanns
TEMPORARY STAFFING RESILIENCE - Temporary and day labor staffing showed bright spots amid macroeconomic uncertainty
WORKERS COMPENSATION BENEFIT - Significant reduction in workers' compensation expenses contributed to improved net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $8.50 mln | $8.11 mln (2 Analysts) |
Q3 Adjusted EBITDA | Beat | $4.70 mln | $3.80 mln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy."
Wall Street's median 12-month price target for Hirequest Inc is $14.00, about 38.2% above its November 5 closing price of $8.65
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nACSkxr4Sa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Comments