TrueBlue Q3 adjusted profit beats estimates as revenue jumps

Overview

• US workforce solutions provider's Q3 revenue rose 21% yr/yr

• Adjusted EPS for Q3 beat analyst expectations

• Company cites improved operating leverage and growth in skilled verticals

Outlook

• TrueBlue did not provide specific financial guidance for the current or future periods in its press release

Result Drivers

• END MARKET EXPANSION - Co said revenue and profitability gains were driven by its strategic focus on expanding into new end markets

• SKILLED VERTICALS EXECUTION - Co attributed increased operating leverage to strong execution in skilled verticals

• LOWER SG&A - SG&A expense declined 3% to $89.1 mln, supporting profitability

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "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 TrueBlue Inc is $9.75, about 1.7% above its November 3 closing price of $9.59

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Nov 2 - Upwork Q3 revenue beats analyst estimates; acquires WorkMotion to strengthen enterprise offering

• Nov 2 - Germany's Amadeus Fire nine-month revenue falls on weakness in Personnel Services segment

• Nov 4 - US private payrolls rise in October, ADP says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)