TrueBlue (NYSE:TBI) Posts Quarterly Earnings Results

TrueBlue (NYSE:TBI) released its quarterly earnings results on Tuesday. The business services provider reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.10) by $0.16, FiscalAI reports. TrueBlue had a negative return on equity of 7.37% and a negative net margin of 3.25%.The company had revenue of $443.00 million for the quarter, compared to analysts’ expectations of $417.84 million.

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

• Positive Sentiment: TrueBlue reported second-quarter revenue of $443 million, up 12% year over year and above guidance, with adjusted EBITDA rising to $11 million from $3 million.
• Positive Sentiment: PeopleReady revenue grew 23%, led by nearly doubled energy-sector revenue, while its on-demand business returned to growth; commercial driving also posted its 10th consecutive quarter of growth.
• Positive Sentiment: All three segments expanded profit margins as SG&A fell 7% despite double-digit revenue growth, demonstrating improved operating leverage and supporting management’s expectation for further incremental-margin expansion.
• Neutral Sentiment: Management guided third-quarter revenue growth of 7% to 11%, including expected growth of 11% to 15% at PeopleReady and 3% to 8% at PeopleManagement, while PeopleSolutions is projected between a 6% decline and 3% growth.
• Negative Sentiment: Gross margin declined to 20.7% from 23.6% because prior-year workers’ compensation and subsidy benefits did not repeat, while PeopleSolutions revenue fell 5% amid subdued hiring demand; the quarter also included a $3 million headquarters write-down.

TrueBlue Stock Performance

Shares of TBI opened at $7.76 on Wednesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.09 and a quick ratio of 2.09. The firm’s 50 day moving average is $7.25 and its 200-day moving average is $5.52. TrueBlue has a 12-month low of $3.18 and a 12-month high of $8.90. The stock has a market capitalization of $236.06 million, a P/E ratio of -4.36 and a beta of 1.60.

Institutional Trading of TrueBlue

A number of large investors have recently added to or reduced their stakes in TBI. Boston Partners increased its holdings in shares of TrueBlue by 107.7% in the third quarter. Boston Partners now owns 1,614,404 shares of the business services provider’s stock valued at $9,895,000 after buying an additional 837,123 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in shares of TrueBlue by 32.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,012,217 shares of the business services provider’s stock worth $9,156,000 after acquiring an additional 492,984 shares in the last quarter. Prosight Management LP boosted its stake in shares of TrueBlue by 456.8% during the 4th quarter. Prosight Management LP now owns 442,554 shares of the business services provider’s stock worth $2,014,000 after acquiring an additional 363,078 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of TrueBlue by 80.8% in the 4th quarter. Russell Investments Group Ltd. now owns 656,233 shares of the business services provider’s stock worth $2,986,000 after acquiring an additional 293,363 shares during the last quarter. Finally, Invenomic Capital Management LP grew its holdings in shares of TrueBlue by 60.5% in the 4th quarter. Invenomic Capital Management LP now owns 442,225 shares of the business services provider’s stock worth $2,012,000 after acquiring an additional 166,660 shares during the last quarter. 97.15% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

TBI has been the subject of several research analyst reports. Wall Street Zen raised shares of TrueBlue from a “sell” rating to a “hold” rating in a report on Saturday, June 20th. Weiss Ratings raised shares of TrueBlue from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, July 2nd. Finally, Zacks Research upgraded shares of TrueBlue from a “strong sell” rating to a “hold” rating in a research report on Monday, April 20th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $5.75.

TrueBlue Company Profile

TrueBlue, Inc is a Tacoma, Washington–based workforce solutions provider specializing in temporary staffing, permanent placement and managed service solutions. Operating through its subsidiaries and brands, TrueBlue connects clients across manufacturing, logistics, retail, construction and public sector markets with skilled professionals for both short-term and long-term engagements. The company’s offerings encompass on-demand blue-collar labor, specialized industrial staffing, recruitment process outsourcing (RPO) and contingent workforce management.

TrueBlue’s primary service lines include PeopleReady, which supplies general labor for construction, hospitality and event services; PeopleManagement, which focuses on technical and industrial professionals; PeopleScout, a global RPO business offering end-to-end talent acquisition and consulting; and Staff Management | SMX, which delivers seasonal staffing for large-scale events, amusement parks and federal workforce contracts.