(Reuters) – Recruitment services firm Robert Half forecast first-quarter revenue slightly below Wall Street estimates on Tuesday, hit by sluggish hiring activity.
Shares of the Menlo Park, California-based company fell more than 11% in after-market trading.
Businesses are cutting back on recruitment services as they hire cautiously and lay off their employees to rein in costs in an uncertain economic environment.
“While job opening demand continues to be above historical levels and candidate supply remains tight, the velocity of hiring remains impacted and there is less churn in the labor force,” CEO Keith Waddell said in a post earnings call.
The company said it expects first-quarter revenue in the range of $1.44 billion to $1.54 billion, the mid point of which is marginally below analysts’ average estimate of $1.50 billion, according to LSEG data.
Robert Half’s fourth-quarter services revenue fell 15% to $1.47 billion, from a year earlier. However, it came in-line with analysts’ average estimate.
For the three months ended Dec. 31, the company reported net income of $87 million, or 83 cents per share, compared with net income of $148 million, or $1.37 per share, a year earlier.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Rashmi Aich)
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