TrueBlue (TBI 21.05, -4.50, -17.6%), which is a provider of specialized workforce solutions, reported its second quarter results after Monday's close. Those results lacked growth while the company's guidance had its share of disappointment. Fittingly, the performance of TBI today fits with the company's name.
For the fiscal second quarter, TrueBlue's revenue was $610 million, which was down 9.3% from the same period a year ago as it felt the pinch of reduced services to its former largest customer. Excluding the scope of services to that particular customer, revenue declined by 5.0%. Its adjusted diluted earnings per share were $0.42. The latter was in-line with analysts' average expectation, but down 22% on a comparable basis from last year.
TrueBlue cited a modest demand environment for its weak results, but noted that it is taking the right approach in the face of modest demand by reducing its operating expenses and emphasizing pricing discipline over simply expanding its market share.
The second quarter results matched the company's expectations, although it would be remiss not to add that True Blue lowered its second quarter guidance bar at the time of its first quarter report in May.
In fact, TrueBlue has formed a bad habit of issuing disappointing quarterly guidance. The company did so once again in conjunction with its second quarter report, marking the fourth consecutive quarter that its guidance has not met, or exceeded, analysts' average expectations.
For the third quarter, TrueBlue anticipates revenues will range from $645 million to $660 million and that its adjusted net income per diluted share will be between $0.55 and $0.60. The high end of those guidance ranges is below analysts' average expectations.