Barrett Business Q2 revenue up 10%, beats estimates

Reuters
Aug 07
Barrett Business <a href="https://laohu8.com/S/QTWO">Q2</a> revenue up 10%, beats estimates

Overview

  • Barrett Business Services Q2 revenue up 10% to $307.7 mln, beating estimates

  • Net income for Q2 rises to $18.5 mln, or $0.70 per diluted share

  • Co announces new $100 mln stock repurchase program

Outlook

  • BBSI expects 2025 gross billings growth of 9% to 10%

  • Company projects WSE growth of 6% to 8% for 2025

  • BBSI anticipates gross margin of 2.9% to 3.05% in 2025

  • Company maintains effective tax rate at 26% to 27%

Result Drivers

  • CLIENT GROWTH - Net new client growth and strong client retention drove revenue increase, per CEO Gary Kramer

  • PEO SERVICES - Growth in professional employer services contributed to higher gross billings

  • WORKERS' COMPENSATION - Lower workers' compensation costs benefited gross billings, aided by favorable prior year adjustments

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$307.70 mln

$300 mln (4 Analysts)

Q2 Net Income

$18.50 mln

Q2 Billings

$2.23 bln

Q2 Cash & Investments

$90.40 mln

Q2 Dividend

$0.08

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 Barrett Business Services Inc is $46.00, about 3.3% above its August 5 closing price of $44.47

  • The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX1YKYVX

(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.)

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