Robert Half Inc. (NYSE: RHI), a leading staffing and consulting services firm, saw its stock price plunge over 5% in the after-hours trading session on Wednesday. This decline came after the company reported weaker-than-expected financial results for the fourth quarter of 2024.

The company reported diluted earnings per share (EPS) of $0.53 for the quarter ended December 31, 2024, falling short of analysts' consensus estimate of $0.55 per share. Robert Half's service revenue for the quarter also missed expectations, coming in at $1.38 billion, compared to analysts' projections of $1.39 billion.

The disappointing results were primarily attributed to the challenging macroeconomic environment and sluggish demand for staffing services. The company cited a slowdown in hiring activity across various sectors, leading to a decline in revenue from its core contract talent solutions and permanent placement talent solutions businesses.

Despite the lackluster performance, Robert Half remained optimistic about its future prospects. The company highlighted its strong market position and diversified service offerings as key strengths that would help it navigate through the current market conditions. Additionally, Robert Half emphasized its efforts to expand its business consulting services through its Protiviti subsidiary, which reported a modest revenue increase during the quarter.

Looking ahead, the company provided guidance for the first quarter of 2025, expecting revenue to be in the range of $1.35 billion to $1.40 billion, reflecting a continuation of the challenging market conditions.