Hays (LON:HAS) Issues Earnings Results

Hays (LON:HAS) released its earnings results on Thursday. The company reported GBX (3.64) earnings per share for the quarter, Digital Look Earnings reports. Hays had a negative net margin of 0.16% and a negative return on equity of 2.24%.

Here are the key takeaways from Hays’ conference call:

• Pre-exceptional operating profit rose 3% to £48.6 million despite an 8% decline in net fees to £906 million, supported by 7% productivity growth, cost reductions, and strong cash conversion.
• Hays launched its Momentum strategy to focus on 16 countries, six global specialisms, higher-value roles, and three product areas, with a medium-term ambition to increase consultant net fee productivity by more than 50% and restore conversion above 25%.
• The company delivered £50 million of annualized structural savings in FY2026 and targets a further £50 million in FY2027, while technology investments—including AI-enabled search and matching tools—are being rolled out to improve consultant efficiency and fill rates.
• Trading remains subdued, particularly in permanent recruitment, with perm fees down 12% and volumes down 14%; July and August activity was broadly unchanged from Q4, and management said September will be a key indicator of demand trends.
• Hays expects significant further exceptional restructuring costs in FY2027 as it pursues additional savings and reshapes its country portfolio, including potential impacts from exiting or reviewing operations in several European countries.

Hays Stock Performance

HAS stock opened at GBX 68.55 on Thursday. Hays has a 1-year low of GBX 28.68 and a 1-year high of GBX 72.83. The company has a current ratio of 1.27, a quick ratio of 1.31 and a debt-to-equity ratio of 65.55. The firm has a market cap of £1.08 billion, a PE ratio of -103.86, a P/E/G ratio of 0.24 and a beta of 0.77. The business’s 50-day moving average price is GBX 48.92 and its two-hundred day moving average price is GBX 40.82.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on HAS shares. Citigroup decreased their target price on Hays from GBX 90 to GBX 75 and set a “buy” rating for the company in a research report on Friday, April 24th. UBS Group reiterated a “neutral” rating and issued a GBX 33 price target on shares of Hays in a research report on Friday, July 3rd. Royal Bank Of Canada reissued an “outperform” rating and set a GBX 60 price objective on shares of Hays in a research note on Tuesday, July 14th. Finally, Jefferies Financial Group restated an “underperform” rating and set a GBX 28 price objective on shares of Hays in a report on Thursday, May 21st. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of GBX 57.20.

Insider Activity

In other Hays news, insider Joe Hurd purchased 5,672 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were bought at an average price of GBX 35 per share, with a total value of £1,985.20. 0.81% of the stock is owned by company insiders.

Hays declared that its board has authorized a stock buyback program on Monday, June 1st that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to purchase shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Hays Company Profile