ASGN (NYSE:EFOR) Posts Earnings Results, Beats Estimates By $0.09 EPS

ASGN (NYSE:EFOR) posted its earnings results on Wednesday. The company reported $0.91 EPS for the quarter, topping the consensus estimate of $0.82 by $0.09, FiscalAI reports. The firm had revenue of $1.01 billion for the quarter, compared to analysts’ expectations of $986.95 million. ASGN had a net margin of 2.46% and a return on equity of 10.30%. The company’s quarterly revenue was down 1.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.17 EPS. ASGN updated its Q3 2026 guidance to 0.920-1.100 EPS.

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

• Second-quarter results exceeded guidance, with revenue above $1 billion and adjusted EBITDA margin of 9.6%, both above the high end of the company’s outlook.
• Commercial bookings improved meaningfully, including stronger-than-expected Workday demand, lifting trailing-12-month book-to-bill to 1.2x. Management said bookings conversion has returned toward historical norms and expects commercial revenue to reach year-over-year growth by the fourth quarter.
• Everforth reported broad-based sequential improvement across all five commercial verticals and cited growing demand for AI, cloud infrastructure, cybersecurity, and enterprise platforms. The company also highlighted new federal AI and cybersecurity awards, hyperscaler data-center work, and potential revenue synergies from Quinnox.
• Revenue remained down year over year in both commercial consulting, by 0.9%, and federal government, by 2.3%; federal trailing-12-month book-to-bill was only 0.8x. The company expects more meaningful federal revenue acceleration in the fourth quarter and into 2027.
• Third-quarter guidance calls for revenue of $994 million to $1.024 billion and adjusted EBITDA margin of 9.6% to 10.3%, while including $7.5 million to $9.5 million of strategic-planning expenses. Free-cash-flow conversion was 48% of adjusted EBITDA in the quarter versus a full-year target of 60%–65%, and management prioritized debt repayment following the Quinnox acquisition.

ASGN Stock Up 0.9%

EFOR stock opened at $23.45 on Thursday. ASGN has a twelve month low of $16.90 and a twelve month high of $54.94. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.82. The stock has a market cap of $963.79 million, a price-to-earnings ratio of 10.38 and a beta of 0.52. The firm’s 50-day moving average is $19.52.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on the company. UBS Group decreased their target price on ASGN from $35.00 to $17.00 and set a “sell” rating for the company in a research report on Friday, May 22nd. Zacks Research upgraded shares of ASGN from a “strong sell” rating to a “hold” rating in a research report on Monday, June 22nd. Truist Financial raised shares of ASGN from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $33.00 to $36.00 in a research report on Wednesday, July 22nd. BMO Capital Markets downgraded shares of ASGN from an “outperform” rating to a “market perform” rating and set a $33.00 target price for the company. in a research report on Thursday, April 23rd. Finally, Weiss Ratings lowered shares of ASGN from a “sell (d+)” rating to a “sell (d)” rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $29.83.

Institutional Investors Weigh In On ASGN

A number of institutional investors and hedge funds have recently bought and sold shares of EFOR. Parallel Advisors LLC raised its position in shares of ASGN by 190.8% during the 4th quarter. Parallel Advisors LLC now owns 1,390 shares of the company’s stock valued at $67,000 after buying an additional 912 shares in the last quarter. Horizon Investments LLC bought a new position in ASGN in the third quarter valued at $515,000. Russell Investments Group Ltd. raised its position in ASGN by 96.9% during the third quarter. Russell Investments Group Ltd. now owns 30,497 shares of the company’s stock valued at $1,444,000 after purchasing an additional 15,011 shares in the last quarter. Finally, New South Capital Management Inc. lifted its stake in ASGN by 39.2% during the fourth quarter. New South Capital Management Inc. now owns 635,011 shares of the company’s stock worth $30,588,000 after purchasing an additional 178,895 shares during the last quarter. 95.36% of the stock is owned by hedge funds and other institutional investors.

ASGN Company Profile

ASGN is a provider of professional services that connects skilled talent with organizations seeking technology, digital, creative and engineering expertise. The firm focuses on staffing and workforce solutions, delivering contract and permanent placement services as well as project-based consulting and managed services to support clients’ technical and operational needs.

Its offerings commonly include IT consulting, digital transformation support, application development and maintenance, data and analytics, cybersecurity, cloud services and engineering resources.