No Major Changes to Our Long-Term Outlook for Robert Half; We Maintain Fair Value Estimate

We see no reason to change our $88 fair value estimate following narrow-moat-rated Robert Half’s second-quarter results. While we modestly reduced our full-year 2022 revenue assumptions, we did lift our full-year adjusted EPS by high single digits. These model changes, however, completely offset one another. Following the release, the stock traded down nominally, presumably due to market fears of a possible recession. That’s despite second-quarter results that were in line with FactSet consensus and a consulting business in Protiviti that continues to hum along in good times and bad—even during the depths of the pandemic.