Barrett Business Services Inc

Korn Ferry reported fiscal second-quarter revenues of $764.6 million, up 6.9% year on year and 2.3% above analysts' expectations, scoring the highest guidance raise among its professional staffing and HR solutions peers. Across the 8 professional staffing and HR solutions stocks tracked, group revenues beat consensus estimates by 2.3% and next-quarter revenue guidance came in 3.9% above expectations, though share prices in the group are down 6.3% on average since the latest earnings results. ManpowerGroup posted the strongest quarter, with revenues of $4.86 billion, up 7.5% year on year and 2.9% above expectations, and its stock is up 46% since reporting, trading at $56.96. Barrett Business Services delivered the weakest performance against analyst estimates, with revenues of $319.3 million, up 3.8% year on year and in line with expectations, alongside a significant miss on EPS, sending its stock down 21.2% to $31.61. Alight reported revenues of $511 million, down 3.2% year on year but 2.8% above expectations, and logged the group's weakest guidance update, with its stock down 33.3% at $11.46, while First Advantage reported revenues of $448.8 million, up 14.9% year on year and 8.2% above expectations, delivering the biggest estimate beat, fastest revenue growth, and highest full-year guidance raise of the group. Korn Ferry's stock is down 12.3% since reporting and currently trades at $71.97.

Zacks Investment Research added three stocks to its Zacks Rank #5 Strong Sell List for September 10th. Build-A-Bear Workshop, ticker BBW, the leading and only national company providing a make your own stuffed animal interactive retail-entertainment experience, saw its Zacks Consensus Estimate for current year earnings revised almost 11.6% downward over the last 60 days. Barrett Business Services, ticker BBSI, which provides light industrial, clerical and technical employees through staff leasing, contract staffing, site management and temporary staffing arrangements, had its current year consensus estimate revised almost 10.6% downward over the same period. BUZZI SPA, ticker BZZUF, which manufactures, distributes and sells cement, ready-mix concrete and aggregates, saw its current year consensus estimate revised 8% downward over the last 60 days.

ManpowerGroup topped Q2 earnings among seven professional staffing and HR solutions companies tracked, with revenues of $4.86 billion, up 7.5% year on year and exceeding analyst expectations by 2.9%. The group's revenues beat consensus estimates by 2.3% on average, while next-quarter guidance came in 2% below. First Advantage also outperformed with revenues of $448.8 million, up 14.9% and beating estimates by 8.2%, while Barrett Business Services was the weakest, with revenues of $319.3 million, up 3.8% but missing EPS estimates significantly. Robert Half reported revenues of $1.34 billion, down 2.4% but beating estimates by 1%, and Insperity posted revenues of $1.69 billion, up 1.7% and topping expectations by 0.7%. Since reporting, ManpowerGroup shares have risen 59.2% to $62.13, while Barrett shares have fallen 14.9% to $34.15.

Professional staffing and HR solutions stocks reported a strong second quarter, with the seven companies tracked beating revenue consensus estimates by 2.3% on average, though next quarter's revenue guidance came in 2% below expectations. Alight reported revenues of $511 million, down 3.2% year over year, beating estimates by 2.8% but issuing weak guidance that sent its stock down 22.1% to $13.38. ManpowerGroup posted revenues of $4.86 billion, up 7.5% year over year and 2.9% above estimates, with its stock up 44.2% to $56.26. Barrett Business Services reported revenues of $319.3 million, up 3.8% year over year and in line with estimates, but missed EPS significantly and its stock fell 21.8% to $31.39. First Advantage reported revenues of $448.8 million, up 14.9% year over year and 8.2% above estimates, with its stock up 3.1% to $21.20. Robert Half reported revenues of $1.34 billion, down 2.4% year over year but beating estimates by 1%, with its stock up 11.3% to $42.15.

Barrett Business Services, Inc. narrowed its full-year 2026 outlook, now expecting gross billings growth of 3% to 4% and a gross margin of 2.7% to 2.75%. The company also tightened its average worksite employee growth forecast to 2% to 3%, citing ongoing macroeconomic and geopolitical uncertainties. In the second quarter, gross billings rose 2.6% to $2.29 billion, while net income per diluted share fell to $0.52 from $0.70 a year earlier. Management highlighted a 17% year-over-year increase in new client acquisitions and noted that workers' compensation pricing momentum should make 2026 the low watermark for margins, with improvement expected in 2027.