Resilient Performance and Strategic Positioning Drive Buy Rating for HireQuest Despite Market Challenges

Resilient Performance and Strategic Positioning Drive Buy Rating for HireQuest Despite Market Challenges

Kevin Steinke, an analyst from Barrington, maintained the Buy rating on HireQuest (HQIResearch Report). The associated price target is $16.00.

Kevin Steinke has given his Buy rating due to a combination of factors, despite the challenging market conditions reflected in HireQuest’s Q4/24 results. The company’s franchise royalty fees, which form a significant portion of its revenue, experienced a decline, but this was largely attributed to macroeconomic uncertainties and specific disruptions like severe winter weather and the timing of the holiday season.
Despite these challenges, HireQuest demonstrated resilience with a slight increase in adjusted EPS, which surpassed expectations due to lower-than-expected tax rates and interest expenses. Additionally, the company managed to reduce SG&A expenses significantly, primarily through a decrease in workers’ compensation costs. These factors, coupled with the company’s strategic positioning as a nationwide franchisor with a diverse portfolio of staffing solutions, underpin Steinke’s optimistic outlook and Buy rating for HireQuest’s stock.

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