In today’s briefing:
- Recruit: More Challenges Ahead for HR Tech Business
- QANTM Intellectual Property Ltd – Guidance for EPS of 20-25% Above Consensus
Recruit: More Challenges Ahead for HR Tech Business
- Recruit’s share price had rallied 38% since November 2023 driven by the stake acquisition by the hedge fund ValueAct despite there being a decline in the company’s earnings.
- Labour markets have further weakened in the December quarter while web traffic on Recruit’s job platforms Indeed and Glassdoor have significantly declined during the quarter.
- Though Recruit Holdings (6098 JP) has guided for a decline in earnings, we think there is further downside to the company’s guidance.
QANTM Intellectual Property Ltd – Guidance for EPS of 20-25% Above Consensus
- QANTM Intellectual Property Ltd (ASX:QIP) owns a group of intellectual property (IP) services businesses operating under the independent brands of Davies Collison Cave (DCC), FPA Patent Attorneys, and Sortify.tm.
- It is a major player in the mature and regulated Australian patent, trade marks and IP legal services market, and has a diversified mix of local and foreign clients (~45%/55% split; ~50% US$ revenue).
- The company has provided a trading update that it expects underlying EBITDA (post AASB 16) to be between 8% and 10% higher than the analyst estimate of $31m and that reported EPS will be between 20% and 25% higher than the analyst estimate of $0.081/share.
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