Business management solutions provider Barrett Business Services (NASDAQ: BBSI) will be reporting earnings tomorrow after market hours. Here’s what investors should know.
Barrett beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $304.8 million, up 10.2% year on year. It was a strong quarter for the company, with a decent beat of analysts’ EPS estimates.
Is Barrett a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Barrett’s revenue to grow 7.6% year on year to $285.9 million, improving from the 4.4% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.13 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Barrett has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Barrett’s peers in the professional staffing & hr solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. ManpowerGroup’s revenues decreased 7.1% year on year, beating analysts’ expectations by 2.9%, and Kforce reported a revenue decline of 6.2%, falling short of estimates by 1%. ManpowerGroup traded down 19.2% following the results while Kforce was also down 14.2%.
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 10.3% on average over the last month. Barrett is up 6.8% during the same time and is heading into earnings with an average analyst price target of $46.75 (compared to the current share price of $41.91).
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