Analyst Note
| Joshua Aguilar |Narrow-moat Robert Half reported solid results in the fourth quarter of 2022, but with disappointing guidance. We maintain our $89 fair value estimate, but will re-evaluate once the company releases its 10-K. Management released first-quarter 2023 revenue and EPS guidance of $1.725 billion and $1.15 at each respective midpoint. First-quarter guidance represents a significant stepdown from last year’s first-quarter earnings of $1.52, though the stepdown in revenue is less material. While we acknowledge near-term macrorelated headwinds, we still think Robert Half is well positioned in the highly cyclical and competitive recruiting industry over the long term. The stock remains slightly undervalued, in our view.