Overview
HireQuest Q2 revenue falls 12% yr/yr, missing analyst expectations, per LSEG data
Adjusted EBITDA for Q2 beats consensus despite staffing market softness
Outlook
Company to focus on controlling expenses and pursuing M&A opportunities
Company aims to benefit from operating leverage when demand returns
Result Drivers
STAFFING MARKET SOFTNESS - HireQuest cites prolonged softness in the staffing market as a key factor affecting Q2 results
FRANCHISE MODEL - Unique franchise model positions HireQuest for operating leverage when demand returns
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $7.60 mln | $7.67 mln (2 Analysts) |
Q2 Adjusted EBITDA | Beat | $3.30 mln | $3.21 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 30.2% above its August 6 closing price of $9.77
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nACSPTy2la
(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.)