Latest news with #BBSI
Globe and Mail
7 days ago
- Business
- Globe and Mail
Barrett (BBSI) Q2 Revenue Jumps 10%
Key Points Revenue (GAAP) of $307.7 million exceeded expectations in Q2 2025 and rose 10.0% year over year. Earnings per share (GAAP) were $0.70, beating consensus and up 12.9% year-over-year. Management raised its outlook for gross billings growth to 9% to 10% (from 7% to 9%) and for worksite employee growth to 6% to 8% (from 4% to 6%) for fiscal 2025. These 10 stocks could mint the next wave of millionaires › Barrett Business Services (NASDAQ:BBSI), a provider of business management solutions and professional employer organization (PEO) services for small and mid-sized businesses, reported financial results for the second quarter of fiscal 2025 on August 6, 2025. The company posted GAAP revenue and earnings above analyst expectations in Q2 2025, with reported GAAP revenue of $307.7 million versus the $299.8 million estimate, and GAAP earnings per share of $0.70, outpacing the $0.6875 consensus. The period saw strong net new client additions and improved workers' compensation costs, though existing client hiring remained muted. Management increased full-year 2025 guidance for gross billings (to 9%–10%) and average worksite employee growth (to 6%–8%), reflecting continued business momentum. Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding Barrett Business Services' Business Model and Strategic Focus Barrett Business Services operates as a business management solutions provider, specializing in professional employer organization (PEO) services for smaller companies. Through its services, it handles human resource administration, payroll processing, and workers' compensation, freeing up clients to focus on their core operations. The company differentiates itself by offering an integrated management platform. This approach combines HR outsourcing with consulting support, helping clients manage personnel needs and meet regulatory requirements. The firm emphasizes localized, decentralized service teams that work closely with client companies to tailor offerings, nurture relationships, and deliver responsive support. Its success depends on adding new clients, expanding its product suite (like healthcare benefits and HR technology), managing insurance cost risks, and maintaining compliance across regulatory environments. Quarter in Review: Growth Drivers and Operational Developments During the quarter, Revenue increased 10% and net income rose 10.8% compared to Q2 2024. Revenue (GAAP) reached $307.7 million, and Earnings per share (GAAP) grew to $0.70. The company's gross billings—a non-GAAP measure of all client billings before deduction of direct staffing costs—rose 10% year-over-year, highlighting continued expansion in its core PEO offering. Net new client additions were a critical factor, driving a year-over-year increase of 8.0% in average worksite employees, from 128,734 to 138,969. Management noted that 'sustained momentum in BBSI Benefits'—the firm's healthcare product suite—was a key factor in landing new customers. The BBSI Benefits platform, which as of April 2025 covers more than 17,500 participants, exceeded expectations for participant growth, especially in California where real uptake outpaced estimates by 2.5 times in just seven months. The company also rolled out an applicant tracking system in March 2025, a software product that allows clients to manage job postings and integrate those seamlessly into payroll and timekeeping. While still early, initial client feedback was positive. Risk management, particularly around workers' compensation expenses, remained strong. Workers' compensation expense as a percent of gross billings fell to 2.1%, down from 2.5% in Q2 2024, partly due to favorable prior-year liability and premium adjustments totaling $8.8 million. These adjustments lower the company's current-year expense but may not recur at the same level in future quarters. The company's staffing services, which comprise a smaller share of total revenue, experienced a decline earlier in 2025.—Staffing revenue fell 11.5% to $17.5 million compared to Q2 2024.—continuing a recent trend of softer demand in that area. Capital returned to shareholders included $8.0 million in share repurchases and a dividend payout of $2.0 million. The company also authorized a new $100 million stock repurchase program, set to run for two years beginning August 4, 2025. For Q3, a dividend of $0.08 per share was declared. Looking Forward: Guidance and Monitor Points for Investors Management raised guidance for the remainder of fiscal 2025. Expected gross billings growth rose to a range of 9% to 10%, up from a previous range of 7% to 9% for 2025. Average worksite employee growth is now anticipated in the 6% to 8% band, compared to the earlier 4% to 6% for 2025. Gross margin guidance was also narrowed and nudged upward at the low end, with a projected range of 2.9% to 3.05% of gross billings. The company expects an effective annual tax rate between 26% and 27%. Looking ahead, investors should watch for continued traction in client additions and adoption of value-added services such as BBSI Benefits and new HR technology. While net new clients remain a central driver, management cautions that existing client hiring is sluggish, reflecting broader macroeconomic caution. Ongoing weakness in the staffing segment and one-time insurance adjustments are other factors to monitor for potential volatility in results. The quarterly dividend was maintained at $0.08 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,026%* — a market-crushing outperformance compared to 180% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Yahoo
08-07-2025
- Business
- Yahoo
Here are 3 Outsourcing Stocks to Consider Amid Industry Woes
Data privacy regulations, communication barriers and geopolitical risks are casting a shadow on the Zacks Outsourcing industry. Quality control issues and loss of control are other headwinds. However, the need to cut down costs, the onset of remote work, the rising focus on cybersecurity awareness, and the surge in trends such as AI and ML are the key can consider Barrett Business Services, Inc. BBSI, The Brink's Company, Inc. BCO, and Capgemini SE CGEMYfrom the Outsourcing market. About the Industry Outsourcing involves delegating a company's internal operations to external resources or third-party contractors to enhance operational efficiency. Within the Zacks Outsourcing sector, one can find companies that provide human capital, business management and IT solutions, primarily catering to small and medium-sized enterprises. These services encompass a broad spectrum, including HR support, payroll management, administration of benefits, retirement planning and insurance services. Certain firms excel in delivering business process services, with a strong focus on transaction processing, analytics and global automation solutions. This outsourcing approach empowers businesses to concentrate on their core competencies while external experts manage these critical functions. What's Shaping the Future of the Outsourcing Industry? The business process outsourcing (BPO) services experience higher demand due to greater flexibility, lower costs and enhanced service quality. The IT outsourcing market is also in robust shape. In the future, outsourced IT services will cover a wide array of functions, including programming and technical support. Companies can outsource entire IT departments to cut costs and focus on core operations. The shortage of in-house engineering talent will drive the outsourcing trend. The demand for robust data encryption and cybersecurity measures is rising on the back of increased public awareness and evolving cyber threats, such as ransomware and national-level cyberattacks. To mitigate cybersecurity threats, companies are focusing on employee security awareness training and breach detection systems. Businesses are increasingly turning to outsourced cybersecurity services to lower risks, maintain compliance and support scalability in their operations. Trends like the Internet of Things (IoT), cloud computing, Artificial Intelligence (AI) and Machine Learning (ML) are gradually transforming the outsourcing sector. These innovations improve efficiency, lead to innovations and increase competitiveness, changing the outsourcing landscape for businesses to streamline operations. For instance, IoT data can be collected, processed and analyzed in the cloud, enabling real-time decision-making and predictive maintenance for clients. By integrating AI and ML into customer support outsourcing, companies can provide swifter, effective and consistent customer support while optimizing operational costs. Zacks Industry Rank Indicates Dull Near-Term Prospects The Zacks Outsourcing industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #196. This rank places it in the bottom 20% of 246 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued underperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperformthe bottom 50% by a factor of more than two to one. Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry's recent stock market performance and current valuation. Industry Underperforms Sector & S&P 500 Over the past year, the Zacks Outsourcing industry underperformed the broader Zacks Business Services sector and the Zacks S&P 500 composite. The industry has declined 6.9% over this period against the broader sector and the Zacks S&P 500 composite's 16.6% and 13.8% growth, respectively. Industry's Current Valuation On the basis of forward 12-month price-to-earnings (P/E), commonly used for valuing outsourcing stocks, the industry is currently trading at 15.96X compared with the S&P 500's 22.75X and the sector's 22.38. In the past five years, the industry has traded as high as 19.71X and as low as 15.07X, with the median being 16.01X, as the charts below show. 3 Outsourcing Stocks Worth a Look Barrett Business Services: This company provides payroll administration, health benefits, staffing and recruiting, and a range of additional services. New client sales, coupled with the upselling of new products and great client retention, are driving BBSI's top line. The company is enjoying success from entering markets with its asset-light model in terms of adding more worksite employees. The company is active on the technology front as well. Barrett Business Services' investment in myBBSI to aid BBSI Benefits is improving client service and support. The BBSI Application Tracking System, launched in March, is receiving positive feedback from clients as well. Overall, the company's investments in technology are reaping benefits and are expected to do so in the long run. The Zacks Consensus Estimate for the company's fiscal 2025 EPS of $2.11 has been flat over the past 30 days. BBSI shares have gained 7.2% over the past three months. Barrett Business Services carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Brink: This is a leading global provider of cash and valuables management, digital retail solutions, and ATM managed services. Growth across all the segments is fueling the top line. Digital Retail Solutions is growing across North America on the back of new installations in auto parts stores and restaurants, while in Latin America, installations in wholesale and C-store markets in Mexico are the driving factors. The company anticipates ATM Managed Services to accelerate in the second half of 2025 due to deployments and pipeline growth. BCO's Global Services Business is growing as long-term customer relationships and global networks are strengthening. The Zacks Consensus Estimate for the company's fiscal 2025 EPS of $7.35 has been flat over the past 30 of Brink have gained 7.5% over the past three months. BCO carries a Zacks Rank #3 at present. Capgemini:This multinational IT services and consulting company is benefiting from a good momentum in financial services and the public sector. The company is experiencing strong growth across the U.K., Ireland, the Asia Pacific and Latin America. On the AI front, CGEMY is witnessing consistent traction with robust client demand. Gen AI is a huge driving factor behind the company's progress in the AI domain. Apart from that, Agentic AI is fueling operational efficiency and value creation. Capgemini is benefiting from investments in key assets. The company has launched a platform to create, integrate and monitor trusted AI agents within its Agentic AI gallery. This helps the company deploy AI for clients while ensuring security and privacy are maintained at the highest levels. The Zacks Consensus Estimate for the company's 2025 EPS has been revised marginally upward to $2.58 over the past 30 days. Shares of Capgemini have gained 9% over the past three months. CGEMY has a Zacks Rank #3 at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report Brink's Company (The) (BCO) : Free Stock Analysis Report Cap Gemini SA (CGEMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-06-2025
- Business
- Yahoo
BBSI Appoints Joseph S. Clabby as Chairman of the Board
Anthony Meeker to Continue as Director VANCOUVER, Wash., June 04, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S., today announced that Joseph S. Clabby has been appointed Chairman of the Board of Directors. He succeeds Tony Meeker, who will continue to serve as a member of the board. "On behalf of the board and leadership team, I want to thank Tony for his longstanding service and steady leadership as Chairman," said Clabby. "Tony has served on BBSI's Board since the company went public in 1993, and his contributions have been instrumental to our growth and success. It is an honor to step into this role and help guide BBSI forward as we build on the company's strong foundation and momentum." Meeker added: "Joe has consistently brought strategic insight and sound judgment to the board since joining. His deep industry knowledge and thoughtful leadership make him an excellent choice to serve as Chairman. I look forward to continuing to work with him and the board in support of BBSI's long-term success." Clabby was appointed Vice Chairman of the Board in December 2024, following his initial appointment as a director in September 2022. He spent over two decades with ACE Limited and then Chubb (NYSE: CB) following its merger with ACE, holding a variety of senior executive positions, including board roles at several affiliated companies. The Vice Chairman role will not be filled at this time. About BBSI BBSI (NASDAQ: BBSI) is a leading provider of business management solutions, combining human resource outsourcing and professional management consulting to create a unique operational platform that differentiates it from competitors. The company's integrated platform is built upon expertise in payroll processing, employee benefits, workers' compensation coverage, risk management and workplace safety programs, and human resource administration. BBSI's partnerships help businesses of all sizes improve the efficiency of their operations. The company works with more than 8,100 PEO clients in all 50 states. For more information, please visit Investor Relations:Gateway Group, Slach Tel 1-949-574-3860 BBSI@
Yahoo
08-05-2025
- Business
- Yahoo
Barrett (NASDAQ:BBSI) Beats Q1 Sales Targets
Business management solutions provider Barrett Business Services (NASDAQ:BBSI) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 10.1% year on year to $292.6 million. Its GAAP loss of $0.04 per share was 68.6% above analysts' consensus estimates. Is now the time to buy Barrett? Find out in our full research report. Barrett (BBSI) Q1 CY2025 Highlights: Revenue: $292.6 million vs analyst estimates of $285.9 million (10.1% year-on-year growth, 2.3% beat) EPS (GAAP): -$0.04 vs analyst estimates of -$0.13 (68.6% beat) Adjusted EBITDA: -$2.21 million vs analyst estimates of -$5.5 million (-0.8% margin, 59.7% beat) Operating Margin: -1.4%, in line with the same quarter last year Market Capitalization: $1.06 billion 'BBSI delivered a strong start to the year, highlighted by record gross and net WSE additions and continued high client retention,' said Gary Kramer, President and CEO of BBSI. Company Overview Operating as a professional employer organization (PEO) that serves over 8,000 companies with more than 120,000 worksite employees, Barrett Business Services (NASDAQ:BBSI) provides management solutions that help small and mid-sized businesses handle human resources, payroll, workers' compensation, and other administrative functions. Sales Growth Reviewing a company's long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. With $1.17 billion in revenue over the past 12 months, Barrett is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand. As you can see below, Barrett's sales grew at a decent 5.2% compounded annual growth rate over the last five years. This shows its offerings generated slightly more demand than the average business services company, a helpful starting point for our analysis. Barrett Quarterly Revenue Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Barrett's annualized revenue growth of 5% over the last two years aligns with its five-year trend, suggesting its demand was consistently weak. Barrett Year-On-Year Revenue Growth This quarter, Barrett reported year-on-year revenue growth of 10.1%, and its $292.6 million of revenue exceeded Wall Street's estimates by 2.3%. We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. This signals Barrett could be a hidden gem because it doesn't get attention from professional brokers.
Washington Post
07-05-2025
- Business
- Washington Post
Barrett: Q1 Earnings Snapshot
VANCOUVER, Wash. — VANCOUVER, Wash. — Barrett Business Services Inc. (BBSI) on Wednesday reported a loss of $1 million in its first quarter. On a per-share basis, the Vancouver, Washington-based company said it had a loss of 4 cents.
