ASGN (NYSE:EFOR) Announces Earnings Results

Key Points

• ASGN beat second-quarter expectations, reporting $0.91 in EPS versus the $0.82 consensus and $1.01 billion in revenue versus estimates of roughly $983 million. However, revenue declined 1.3% year over year and EPS fell from $1.17 in the prior-year quarter.
• Commercial bookings improved, supported by stronger Workday demand and growing interest in AI, cloud infrastructure, cybersecurity and enterprise platforms. Management expects commercial revenue to return to year-over-year growth by the fourth quarter, while federal revenue recovery is expected later.
• ASGN issued third-quarter EPS guidance of $0.92–$1.10 and revenue guidance of $994 million–$1.024 billion. Despite the earnings beat, analysts remain cautious: the consensus rating is “Reduce,” and Wells Fargo cut its price target from $33 to $26.

ASGN (NYSE:EFOR - Get Free Report) released its earnings results on Wednesday. The company reported $0.91 EPS for the quarter, topping analysts' consensus estimates of $0.82 by $0.09, Briefing.com reports. The company had revenue of $1.01 billion for the quarter, compared to the consensus estimate of $983.00 million. ASGN had a return on equity of 10.30% and a net margin of 2.46%.ASGN's quarterly revenue was down 1.3% compared to the same quarter last year. During the same quarter last year, the business posted $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 Performance

Shares of EFOR traded up $4.08 during midday trading on Thursday, hitting $27.49. 1,823,843 shares of the stock traded hands, compared to its average volume of 1,055,722. The company's 50 day simple moving average is $19.52. The company has a market capitalization of $1.13 billion, a price-to-earnings ratio of 12.16 and a beta of 0.52. The company has a debt-to-equity ratio of 0.82, a current ratio of 2.10 and a quick ratio of 2.10. ASGN has a 1-year low of $16.90 and a 1-year high of $54.94.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on EFOR shares. Wells Fargo & Company dropped their price target on ASGN from $33.00 to $26.00 and set an "equal weight" rating on the stock in a research report on Thursday. Weiss Ratings downgraded shares of ASGN from a "sell (d+)" rating to a "sell (d)" rating in a report on Wednesday, May 6th. Robert W. Baird lowered their target price on shares of ASGN from $62.00 to $38.00 and set a "neutral" rating for the company in a research note on Thursday, April 23rd. BMO Capital Markets cut shares of ASGN from an "outperform" rating to a "market perform" rating and set a $33.00 target price on the stock. in a report on Thursday, April 23rd. Finally, Zacks Research upgraded shares of ASGN from a "strong sell" rating to a "hold" rating in a research report on Monday, June 22nd. One research analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $28.67.

More ASGN News

Here are the key news stories impacting ASGN this week:

• Positive Sentiment: ASGN reported second-quarter adjusted earnings of $0.91 per share, exceeding the $0.82 consensus estimate. Revenue of $1.01 billion also surpassed expectations of approximately $983 million to $987 million. ASGN Second-Quarter Results
• Positive Sentiment: The quarter included $96.7 million in adjusted EBITDA, $52.2 million in operating cash flow, $46.3 million in free cash flow, and the repurchase of approximately 400,000 shares. These results support the company’s financial flexibility and shareholder-return program. ASGN Second-Quarter Results
• Neutral Sentiment: ASGN issued third-quarter EPS guidance of $0.92 to $1.10, bracketing the analyst consensus estimate of $1.00. The midpoint is broadly in line with expectations, but the range indicates some uncertainty around near-term performance.
• Negative Sentiment: Despite the earnings beat, quarterly revenue declined 1.3% year over year, while EPS fell from $1.17 in the prior-year period. The results therefore show solid execution against estimates but continued pressure on growth and profitability.
• Negative Sentiment: Wells Fargo lowered its ASGN price target from $33 to $26 and assigned an “equal weight” rating. The new target implies approximately 5.4% downside from the referenced share price, creating a negative catalyst for the stock. Wells Fargo Price Target Update

Institutional Trading of ASGN

Several hedge funds have recently bought and sold shares of the company. New South Capital Management Inc. grew its position in ASGN by 39.2% in the 4th 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. Russell Investments Group Ltd. increased its stake in shares of ASGN by 106.4% in the fourth quarter. Russell Investments Group Ltd. now owns 62,934 shares of the company's stock valued at $3,032,000 after purchasing an additional 32,437 shares during the period. Horizon Investments LLC bought a new stake in shares of ASGN during the third quarter valued at approximately $515,000. Finally, Parallel Advisors LLC raised its holdings in shares of ASGN by 190.8% during the fourth quarter. Parallel Advisors LLC now owns 1,390 shares of the company's stock valued at $67,000 after buying an additional 912 shares during the last quarter. 95.36% of the stock is currently owned by institutional investors.

About ASGN

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.

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