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

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

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(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.)