HireQuest (NASDAQ:HQI) Releases Earnings Results, Beats Estimates By $0.07 EPS

HireQuest (NASDAQ:HQI) announced its quarterly earnings results on Monday. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.07, FiscalAI reports. HireQuest had a return on equity of 14.48% and a net margin of 21.92%.The firm had revenue of $7.03 million for the quarter, compared to the consensus estimate of $7.41 million.

Here are the key takeaways from HireQuest’s conference call:

• HireQuest restructured MRI Network, divesting the permanent-placement business to a new leadership-owned entity while retaining a minority stake and full ownership of MRI’s contract staffing, which management says reduces exposure to the slow permanent-placement market and aligns leadership with franchise operators.
• The board approved a share repurchase program authorizing up to $20 million of common-stock buybacks, signaling capital return to shareholders and confidence in the company’s strategy.
• Top-line pressure continued as Q4 revenue fell 13% to $7.0 million and full-year revenue declined to $30.6 million, with system-wide sales down about 11% year-over-year to $500.2 million.
• Despite revenue declines, HireQuest remained profitable (full-year net income $6.3 million), adjusted net income was flat year-over-year, workers’ compensation expense dropped roughly $1.9 million, and the company finished 2025 debt-free with improved working capital (~$33 million).
• Management said the acquisition pipeline is thin—one near-term deal fell through and they remain selective—so inorganic growth may be limited in the near term.

HireQuest Stock Down 1.5%

Shares of HireQuest stock traded down $0.15 during trading hours on Monday, reaching $9.79. 16,465 shares of the stock traded hands, compared to its average volume of 22,854. HireQuest has a one year low of $7.38 and a one year high of $12.51. The firm has a market capitalization of $138.04 million, a price-to-earnings ratio of 19.58 and a beta of 1.03. The company has a 50 day moving average price of $10.98 and a 200 day moving average price of $9.85.

HireQuest Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 16th. Shareholders of record on Monday, March 2nd were given a $0.06 dividend. This represents a $0.24 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend was Monday, March 2nd. HireQuest’s dividend payout ratio (DPR) is presently 48.00%.

Insider Buying and Selling at HireQuest

In other HireQuest news, CEO Richard Hermanns acquired 9,704 shares of the company’s stock in a transaction that occurred on Tuesday, December 30th. The shares were bought at an average price of $10.28 per share, with a total value of $99,757.12. Following the completion of the acquisition, the chief executive officer owned 2,951,283 shares in the company, valued at $30,339,189.24. This represents a 0.33% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 43.50% of the stock is owned by company insiders.

Institutional Trading of HireQuest

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Wells Fargo & Company MN increased its stake in shares of HireQuest by 47.2% in the fourth quarter. Wells Fargo & Company MN now owns 6,333 shares of the company’s stock worth $67,000 after purchasing an additional 2,031 shares in the last quarter. Renaissance Technologies LLC purchased a new position in shares of HireQuest during the 4th quarter valued at $112,000. Deutsche Bank AG lifted its stake in shares of HireQuest by 158.0% during the 4th quarter. Deutsche Bank AG now owns 10,945 shares of the company’s stock valued at $115,000 after buying an additional 6,702 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in HireQuest by 67.8% in the 2nd quarter. Russell Investments Group Ltd. now owns 26,303 shares of the company’s stock worth $263,000 after buying an additional 10,627 shares during the period. Finally, State Street Corp boosted its holdings in HireQuest by 1.9% in the 4th quarter. State Street Corp now owns 76,866 shares of the company’s stock worth $808,000 after buying an additional 1,451 shares during the period. 12.00% of the stock is owned by hedge funds and other institutional investors.

HireQuest announced that its board has initiated a share buyback plan on Wednesday, December 17th that permits the company to buyback $20.00 million in shares. This buyback authorization permits the company to repurchase up to 18.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the company. Barrington Research reissued an “outperform” rating and issued a $13.00 target price on shares of HireQuest in a research report on Thursday, January 29th. Weiss Ratings raised shares of HireQuest from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, January 12th. Wall Street Zen upgraded shares of HireQuest to a “hold” rating in a research note on Saturday, January 17th. Finally, DA Davidson set a $15.00 price objective on shares of HireQuest in a report on Tuesday, December 2nd. One investment analyst has rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $14.00.

HireQuest Company Profile

HireQuest, Inc is a publicly traded holding company that provides equipment rental and workforce solutions across North America through two primary operating subsidiaries. Its Coast Equipment Rentals division offers a broad range of support equipment—such as pumps, trench safety systems, power and HVAC units, air compressors, light towers and generators—to the construction, industrial, municipal and environmental markets. Coast Equipment Rentals operates more than 135 branch locations in 36 U.S.