Barrett Business Q2 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:
