TrueBlue (NYSE:TBI) Releases Quarterly Earnings Results, Beats Expectations By $0.14 EPS

TrueBlue (NYSE:TBI) announced its earnings results on Wednesday. The business services provider reported $0.33 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.14, FiscalAI reports. The firm had revenue of $520.74 million for the quarter, compared to the consensus estimate of $468.06 million. TrueBlue had a negative return on equity of 6.26% and a negative net margin of 3.35%.

Here are the key takeaways from TrueBlue’s conference call:

• Revenue rose 21% to $521 million, exceeding the high end of guidance and marking TrueBlue’s fifth consecutive quarter of growth. All three segments grew, while adjusted EBITDA increased to $21 million from $11 million a year earlier.
• Management forecast fourth-quarter revenue growth of 20%–24%, with improvement expected across all three segments and continued year-over-year profitability gains. The outlook accounts for typical holiday and weather impacts, and executives cautioned that energy project timing can be uneven.
• Growth in skilled markets remained strong: energy revenue doubled, commercial driving posted its 11th consecutive quarter of growth, and PeopleReady OnDemand grew for a second straight quarter. Management also cited more than $50 million in annualized PeopleManagement new-business wins during Q3, though some projects may normalize in the coming quarter.
• Gross margin declined to 20.5% from 22.7%, primarily because energy work includes pass-through travel costs that lower reported margin percentages. Working capital also rose $35 million during the quarter; management expects free cash flow to turn positive as working capital normalizes.

TrueBlue Price Performance

Shares of TBI opened at $9.79 on Thursday. TrueBlue has a fifty-two week low of $3.18 and a fifty-two week high of $11.03. The stock has a fifty day moving average of $9.35 and a two-hundred day moving average of $6.84. The company has a current ratio of 2.28, a quick ratio of 2.28 and a debt-to-equity ratio of 0.32.

Wall Street Analyst Weigh In

Several research firms have commented on TBI. Weiss Ratings restated a “sell (d-)” rating on shares of TrueBlue in a research report on Tuesday, September 29th. Robert W. Baird set a $9.50 price objective on TrueBlue in a research report on Wednesday, August 5th. Finally, Wall Street Zen raised TrueBlue from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, TrueBlue presently has an average rating of “Reduce” and an average target price of $9.50.

About TrueBlue

TrueBlue, Inc (NYSE:TBI) is a workforce solutions company that connects businesses with employees and provides staffing, recruiting and workforce management services. Its offerings support employers seeking temporary, contingent and permanent workers across a range of industries, including manufacturing, logistics, retail, hospitality, construction and other commercial sectors.

The company operates through several specialized brands. PeopleReady provides industrial and general labor staffing, while PeopleManagement offers on-site workforce management and contingent labor solutions.