Recruiter HireQuest Q2 revenue misses estimates

Reuters
Aug 08
Recruiter HireQuest <a href="https://laohu8.com/S/QTWO">Q2</a> revenue misses estimates

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.)

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