ASGN (NYSE:EFOR) Issues Earnings Results

ASGN (NYSE:EFOR) issued its earnings results on Wednesday. The company reported $1.11 EPS for the quarter, topping analysts’ consensus estimates of $1.02 by $0.09, FiscalAI reports. ASGN had a net margin of 1.71% and a return on equity of 8.93%. The business had revenue of $1.03 billion for the quarter. The business’s quarterly revenue was up 2.0% on a year-over-year basis.

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 Trading Up 2.9%

EFOR traded up $1.07 during midday trading on Friday, hitting $38.08. 284,559 shares of the company traded hands, compared to its average volume of 958,802. The company has a debt-to-equity ratio of 0.80, a current ratio of 2.13 and a quick ratio of 2.13. ASGN has a 52-week low of $16.90 and a 52-week high of $54.94. The stock has a market cap of $1.56 billion, a P/E ratio of 23.36 and a beta of 0.48. The stock’s 50 day moving average price is $34.67.

Institutional Investors Weigh In On ASGN

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

Analysts Set New Price Targets

Several research firms recently weighed in on EFOR. Weiss Ratings upgraded ASGN from a “sell (d)” rating to a “sell (d+)” rating in a report on Monday, September 28th. Zacks Research lowered ASGN from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Truist Financial raised their price objective on ASGN from $36.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday, October 9th. UBS Group raised their price target on shares of ASGN from $17.00 to $19.00 and gave the stock a “sell” rating in a report on Thursday. Finally, Wells Fargo & Company upped their target price on ASGN from $26.00 to $38.00 and gave the company an “equal weight” rating in a research report on Thursday. One investment 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 MarketBeat.com, the company currently has an average rating of “Reduce” and an average target price of $33.83.

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.