TrueBlue Inc Reports Second Quarter 2024 Financial Results

TrueBlue, Inc. Reports Second Quarter 2024 Financial Results

TrueBlue, Inc. reported its financial results for the fiscal quarter ending June 30, 2024. Below is an analysis of the key performance metrics and segments.

Key Financial Metrics

Interpretation: TrueBlue reported a significant decline in both revenue and earnings for Q2 2024. Revenue decreased by 16.7% year-over-year and 1.7% quarter-over-quarter, falling short of the Wall Street consensus estimate of $414.47 million. The earnings per share (EPS) of -$3.51 was significantly below the consensus estimate of -$0.05, indicating substantial operational challenges and higher costs impacting profitability.

Revenue Performance by Segment

Interpretation: Each of TrueBlue’s major segments experienced declines in revenues. PeopleReady saw an 18.9% decrease, driven by economic uncertainty leading clients to cut back on contingent employment. PeopleScout experienced the most significant decrease, declining by 31.2%, due to reduced hiring volumes and economic uncertainties leading to hiring freezes. PeopleManagement had a more modest decline of 6.3%, primarily in the retail industry, partially offset by growth in the commercial driving sector.

Comments from Company Officers

Company officers noted that demand across all segments was negatively impacted by continued economic uncertainty, including factors like inflation and fluctuating interest rates. They indicated cost management initiatives as part of the strategic responses to these challenges but did not provide further details in the comments.

Dividends or Share Repurchase Program

TrueBlue repurchased $17.0 million worth of its common stock in the open market during Q2 2024. As of June 30, 2024, $37.8 million remains available for repurchase under the existing authorization.

Forward Guidance

TrueBlue provided revenue guidance for the fiscal third quarter of 2024, projecting a decline between 20% and 14% compared to the same period in the prior year. They anticipate gross profit to decline between 60 and 20 basis points and expect SG&A expenses to be between $99 million and $103 million for the fiscal third quarter.

Stock Price Movement

Following the earnings release, TrueBlue’s stock price experienced a decrease of 5.05%.

This summary provides a comprehensive review based on the provided data, capturing the financial and operational performance, comments from executives, and future guidance.