Barrett Business Services (NASDAQ: BBSI) is a company that provides human resources management (HRM) services. It helps other businesses by handling tasks like payroll and employee benefits. This is often called HR outsourcing. The company has a market capitalization, which is the total value of all its shares, of around $985.10 million.
An analyst from Macquarie has set a stock price target of $38.00 for Barrett Business Services. This target represents the price the analyst believes the stock will reach in the future. The target was established when the stock was trading at a price of $40.11, suggesting the analyst expects a slight decrease in value.
This outlook may be influenced by the company's recent performance. As highlighted by Zacks, Barrett Business Services reported second-quarter earnings of $0.52 per share, which missed the expected $0.56 per share. This figure is also lower than the $0.70 per share reported in the same quarter of the previous year.
The company's revenue for the quarter was $2.29 billion, a slight miss of analyst estimates but a 2.6% increase from the prior year, as noted by MarketBeat. While Professional Employer Organization (PEO) services billings grew, temporary staffing revenue saw a significant 18% decline to $14.00 million, showing weakness in one area of the business.
Despite challenges, new client acquisitions rose 17% year-over-year, adding about 4,500 worksite employees. However, as President and CEO Gary Kramer explained, hiring slowdowns at existing clients offset these gains. This resulted in only a 1% total increase in worksite employees during the quarter, showing a mixed growth picture.
