BBSI Earnings Prediction
The chart below shows how BBSI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BBSI sees a -0.50% change in stock price 10 days leading up to the earnings, and a +3.36% change 10 days following the report. On the earnings day itself, the stock moves by -0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
BBSI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
304.82M
10.17%
3.58%
Gross Margin
22.78%
-1.17%
-7.55%
Operating Margin
6.76%
2.74%
-15.18%
Net Margin
5.51%
4.75%
-17.39%
EPS
0.63
16.67%
-14.86%
No Data Available
BBSI Earnings Analysis
Barrett Business Services Inc Corporation (BBSI.O) Earnings Conference Call
Positive
Strong Financial Performance: Strong fourth quarter and year-end financial results, exceeding expectations.
Employee Growth from New Clients: Record number of worksite employees added from new clients, indicating successful sales initiatives.
Q4 Gross Billings Growth: Gross billings increased by 10% year-over-year in Q4, demonstrating strong revenue growth.
Record Client Retention Rate: Client retention rate set a record, reflecting high client satisfaction and value provided.
Client Satisfaction Improvement: Net Promoter Score increased by 5 points to 69, indicating improved client satisfaction.
Geographic Expansion Success: Successful expansion into new geographies with positive results from new market development managers.
Health Insurance Participation Growth: BBSI Benefits offering exceeded growth expectations, doubling client participation in health insurance plans.
Hiring Trends and Growth: Positive hiring trends observed in Q4, with expectations for continued growth in 2025.
Workers' Compensation Success: Strong performance in workers' compensation program, benefiting from favorable claim trends.
Technology Investment Impact: Investment in technology and new product support expected to improve operational efficiency and sales velocity.
Capital Return Commitment: Share repurchase program and dividends demonstrate commitment to returning capital to shareholders.
Negative
Staffing Business Decline: Staffing business declined by 9% over the prior year quarter and 7% for the year, indicating a significant downturn in this segment.
Client Hiring Trends Analysis: Client hiring trends remain below historical averages, suggesting a slower recovery in workforce growth despite some improvements in Q4.
Gross Billings Growth Rate: While gross billings increased, the growth rate of 7.9% for the full year was lower than previous years, indicating a potential slowdown in overall business expansion.
Decline in Investment Income: Investment income decreased by approximately $300,000 from the prior year due to lower average interest rates, which may impact future profitability.
Rising SG&A Expenses: SG&A expenses increased by 7% year-over-year, indicating rising operational costs that could affect margins if not managed effectively.
Regional Decline Impact: The Pacific Northwest region, which represents about 5% of gross billings, declined by 4%, highlighting regional weaknesses that could hinder overall growth.
Business Day Impact on Growth: The company anticipates one less business day in 2025, which could negatively impact gross billings growth by about 0.5 percentage points.
BBSI FAQs
How does BBSI typically perform around its earnings report dates?
Is Barrett Business Services Inc (BBSI) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
BBSI Earning Call Sentiment
Barrett Business Services, Inc. (BBSI) Q4 2024 Earnings Call Transcript
BBSI.O
-0.1%Positive
The earnings call summary presents a mixed picture. While there is strong growth in gross billings and EPS, there are concerns about regulatory issues, staffing business decline, and investment income. The Q&A session indicates stability and recovery but lacks clarity on workers' comp pricing. The strategic partnership with Kaiser Permanente is a positive, but the lack of market cap data limits impact assessment. The shareholder return plan is positive, but economic factors and client payroll tax rates pose risks. Overall, the sentiment is neutral with a slight positive tilt.
