ASGN (NYSE:EFOR) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

ASGN (NYSE:EFOR) posted its quarterly earnings results on Wednesday. The company reported $1.11 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $0.09, FiscalAI reports. ASGN had a net margin of 2.09% and a return on equity of 9.54%. The firm had revenue of $1.03 billion for the quarter. The company’s quarterly revenue was up 2.0% compared to the same quarter last year.

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

• Third-quarter results exceeded guidance, with revenue of $1.03 billion and adjusted EBITDA of $106.3 million; the 10.3% adjusted EBITDA margin reached the top of the company’s target range.
• Demand remained strong in AI, data, cybersecurity, cloud, and enterprise modernization. Commercial consulting book-to-bill was 1.1x, federal quarterly book-to-bill was 1.9x, and security and risk bookings increased more than 40% year to date.
• Everforth said its technology partnerships and expanded onshore/offshore delivery model are generating larger, longer-duration opportunities, while the Quinnox acquisition is already supporting revenue synergies and additional offshore capacity.
• The company repaid approximately $52.8 million of debt during the quarter, including opportunistic bond repurchases, and remains focused on reducing net leverage from 3.1x to 2.5x or below. Management also reiterated its goal of achieving at least 12.5% adjusted EBITDA margin by the end of 2028 through growth, margin expansion, and $80 million of structural cost savings.
• Fourth-quarter guidance calls for revenue of $965 million to $995 million and adjusted EBITDA of $93 million to $103 million, reflecting normal seasonality, three fewer billable days, and limited near-term contribution from recent federal bookings. Management described the outlook as steady rather than accelerating, while strategic planning expenses of $6 million to $7.5 million will continue to weigh on results before normalizing in 2027.

ASGN Stock Down 5.3%

EFOR traded down $2.06 during trading on Thursday, hitting $36.68. The company had a trading volume of 153,379 shares, compared to its average volume of 952,695. The stock has a 50-day moving average of $34.57. ASGN has a one year low of $16.90 and a one year high of $54.94. The stock has a market capitalization of $1.50 billion, a P/E ratio of 18.91 and a beta of 0.48. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.13 and a quick ratio of 2.13.

Hedge Funds Weigh In On ASGN

An institutional investor recently bought a new stake in ASGN stock. Crescent Grove Advisors LLC acquired a new position in shares of ASGN Incorporated (NYSE:EFOR) in the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 12,400 shares of the company’s stock, valued at approximately $408,000. 95.36% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

EFOR has been the topic of several recent research reports. BMO Capital Markets raised their target price on shares of ASGN from $30.00 to $41.00 and gave the company a “market perform” rating in a research note on Friday, October 9th. Zacks Research lowered ASGN from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. Weiss Ratings upgraded ASGN from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, September 28th. Wells Fargo & Company boosted their target price on ASGN from $26.00 to $38.00 and gave the stock an “equal weight” rating in a research report on Thursday. Finally, Truist Financial upped their price target on ASGN from $36.00 to $45.00 and gave the company a “buy” rating in a research note on Friday, October 9th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $33.50.

About ASGN

ASGN Incorporated is a provider of information technology and professional services to commercial and government organizations. The company helps clients address digital transformation, cloud modernization, cybersecurity, data and analytics, application development, and other technology needs.

ASGN delivers these services through consulting, project-based solutions, and professional staffing. Its government segment provides technology, engineering, and mission-support services to U.S. federal agencies, while its commercial segment serves businesses across industries including healthcare, financial services, communications, and manufacturing.

The company traces its origins to 1985, when it was established as On Assignment, and expanded its government-services capabilities through the acquisition of ECS Federal in 2018.