TrueBlue Inc (NYSE:TBI) shares are trading lower by over 18% after the company reported worse-than-expected Q2 FY23 financial results.
The company reported a revenue decline of 16% Y/Y to $476 million, missing the consensus of $496.1 million.
By segment, revenues declined by 13% Y/Y in PeopleReady, 33% Y/Y in PeopleScout, and 13% Y/Y in PeopleManagement business.
Adjusted EPS of $0.17 came below the consensus of $0.22.
As of Jun 25, 2023, cash and cash equivalents stood at $49.7 million, and operating cash flow came in at $20.9 million.
“Our results reflect an environment of softening demand. Given the tight labor market, clients continue to focus on retaining employees, but they are also increasingly focused on reducing costs. As a result, clients are becoming more selective on which jobs they choose to fill….We maintained pricing discipline in our staffing segments and took additional actions to reduce costs,” said Taryn Owen, President & COO.
Outlook: For Q3 2023, the company expects revenue of $484 million-$509 million (vs. consensus of $516.88 million).
Also Read: Bouncing Back Like a True Blue: Analyst Sees Upswing in Staffing Star’s Fortunes
Price Action: TBI shares are down by 18.5% at $14.89 on the last check Tuesday.
