Professional Staffing & HR Solutions Stocks Q3 Teardown: Alight (NYSE:ALIT) Vs The Rest

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at professional staffing & hr solutions stocks, starting with Alight (NYSE:ALIT).

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 7 professional staffing & HR  solutions stocks we track reported a mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.3% since the latest earnings results.

Alight (NYSE:ALIT)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE:ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $533 million, down 4% year on year. This print fell short of analysts’ expectations by 0.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and EPS in line with analysts’ estimates.

“I am pleased with our ability to deliver enhanced outcomes for clients and their people, with participant satisfaction at record levels since the end of our technology transformation," said CEO Dave Guilmette.

Alight delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 21.5% since reporting and currently trades at $2.15.

Read our full report on Alight here, it’s free for active Edge members.

Best Q3: Kforce (NYSE:KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE:KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $332.6 million, down 5.9% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 20% since reporting. It currently trades at $29.44.

Is now the time to buy Kforce? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Insperity (NYSE:NSP)

Pioneering the professional employer organization (PEO) industry it helped establish, Insperity (NYSE:NSP) provides human resources outsourcing services to small and medium-sized businesses, handling payroll, benefits, compliance, and HR administration.

Insperity reported revenues of $1.62 billion, up 4% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ EPS guidance for next quarter estimates.

As expected, the stock is down 29.1% since the results and currently trades at $31.96.

Read our full analysis of Insperity’s results here.

Robert Half (NYSE:RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE:RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 7.5% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded EPS in line with analysts’ estimates but revenue in line with analysts’ estimates.

Robert Half had the slowest revenue growth among its peers. The stock is down 12% since reporting and currently trades at $26.08.

Read our full, actionable report on Robert Half here, it’s free for active Edge members.

ManpowerGroup (NYSE:MAN)

Founded during the post-World War II economic boom when businesses needed temporary workers, ManpowerGroup (NYSE:MAN) connects millions of people to employment opportunities through its global network of staffing, recruitment, and workforce management services.

ManpowerGroup reported revenues of $4.63 billion, up 2.3% year on year. This number topped analysts’ expectations by 0.7%. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ EPS guidance for next quarter estimates but a significant miss of analysts’ EPS estimates.

The stock is down 26.3% since reporting and currently trades at $28.01.

Read our full, actionable report on ManpowerGroup here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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