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Barrett Business Services Q3 revenue slightly beats on higher average billings per employee

By Reuters News


Overview

  • Business management solutions provider's Q3 revenue rose 5%, a slight beat of analyst expectations

  • Net income for Q3 fell year-over-year amid soft client hiring trends

  • Company repurchased $9 mln in stock during Q3


Outlook

  • Company expects 2026 gross billings growth of 3% to 4%

  • Company sees 2026 average WSE growth of 1% to 2%

  • Company expects 2026 gross margin as percent of gross billings at 2.70% to 2.75%


Result Drivers

  • PEO SERVICES GROWTH - Co said revenue growth was driven by increased worksite employees from net new clients and higher average billings per employee

  • RATE INCREASES - Co said improved conditions in the workers' compensation market and ability to secure rate increases supported results

  • LOWER FAVORABLE ADJUSTMENTS - Co said workers' compensation expense included smaller favorable adjustments than a year ago


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$334.10 mln

$332.20 mln (4 Analysts)

Q3 Net Income

$16.80 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 $40.50, about 23.7% above its November 3 closing price of $32.73

  • The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 20 three months ago


Reuters Recommended Reads

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

  • Nov 3 - Huron Consulting Q3 revenue rises

  • 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.)

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