Business management solutions provider Barrett Business Services (NASDAQ: BBSI) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.
Barrett beat analysts’ revenue expectations last quarter, reporting revenues of $307 million, up 4.9% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Barrett a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Barrett’s revenue to grow 3.8% year on year, slowing from the 10% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Barrett has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Barrett’s peers in the professional staffing & hr solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ManpowerGroup delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 2.9%, and Kforce reported revenues up 4.5%, in line with consensus estimates. ManpowerGroup traded up 34.1% following the results while Kforce’s stock price was unchanged.
Read our full analysis of ManpowerGroup’s results here and Kforce’s results here.
There has been positive sentiment among investors in the professional staffing & hr solutions segment, with share prices up 5.3% on average over the last month. Barrett is up 6% during the same time and is heading into earnings with an average analyst price target of $42.25 (compared to the current share price of $39.85).
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