William Blair Has Negative Outlook for Kforce Q3 Earnings

Key Points

• William Blair has reduced its Q3 2025 EPS estimates for Kforce from $0.60 to $0.57, indicating a pessimistic outlook for the company's earnings.
• Kforce's stock has decreased by 18.1%, with a current price of $38.40, which is significantly below its 12-month high of $71.48.
• The company recently announced a quarterly dividend of $0.39 per share, representing an annualized yield of 4.06% and a payout ratio of 65.27%.

Kforce Inc. (NASDAQ:KFRC - Free Report) - Analysts at William Blair decreased their Q3 2025 earnings estimates for shares of Kforce in a report issued on Tuesday, July 29th. William Blair analyst T. Romeo now expects that the business services provider will earn $0.57 per share for the quarter, down from their previous estimate of $0.60. The consensus estimate for Kforce's current full-year earnings is $2.70 per share. William Blair also issued estimates for Kforce's Q4 2025 earnings at $0.45 EPS, FY2025 earnings at $2.06 EPS, Q1 2026 earnings at $0.35 EPS, Q2 2026 earnings at $0.53 EPS, Q4 2026 earnings at $0.60 EPS and FY2027 earnings at $2.79 EPS.

A number of other equities analysts also recently issued reports on the stock. UBS Group cut their price target on shares of Kforce from $45.00 to $40.00 and set a "neutral" rating for the company in a report on Wednesday. Truist Financial decreased their target price on shares of Kforce from $50.00 to $46.00 and set a "hold" rating on the stock in a research report on Tuesday, July 29th. Finally, Wall Street Zen lowered shares of Kforce from a "buy" rating to a "hold" rating in a research note on Friday, May 2nd.

Kforce Stock Performance

Kforce stock traded down $0.65 during trading hours on Wednesday, reaching $34.20. 352,795 shares of the stock were exchanged, compared to its average volume of 158,763. The firm's 50 day moving average is $41.62 and its 200 day moving average is $45.61. The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.06 and a current ratio of 2.06. The stock has a market cap of $637.09 million, a P/E ratio of 12.76 and a beta of 0.75. Kforce has a 52-week low of $33.28 and a 52-week high of $67.33.

Kforce (NASDAQ:KFRC - Get Free Report) last issued its quarterly earnings results on Monday, July 28th. The business services provider reported $0.59 earnings per share for the quarter, missing analysts' consensus estimates of $0.60 by ($0.01). The business had revenue of $334.32 million for the quarter, compared to analyst estimates of $333.78 million. Kforce had a return on equity of 30.34% and a net margin of 3.59%. The firm's revenue for the quarter was down 6.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.75 EPS.

Kforce Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Shareholders of record on Friday, September 12th will be issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 4.6%. The ex-dividend date of this dividend is Friday, September 12th. Kforce's payout ratio is currently 65.27%.

Insider Buying and Selling

In other news, Director David L. Dunkel purchased 1,000 shares of Kforce stock in a transaction dated Monday, May 5th. The stock was bought at an average price of $37.80 per share, with a total value of $37,800.00. Following the completion of the acquisition, the director owned 517,329 shares in the company, valued at $19,555,036.20. The trade was a 0.19% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 4.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kforce

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp lifted its holdings in Kforce by 0.3% in the first quarter. Bank of New York Mellon Corp now owns 149,463 shares of the business services provider's stock worth $7,307,000 after purchasing an additional 492 shares during the period. Envestnet Asset Management Inc. raised its holdings in Kforce by 5.4% during the 1st quarter. Envestnet Asset Management Inc. now owns 175,433 shares of the business services provider's stock worth $8,577,000 after buying an additional 8,995 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its stake in Kforce by 10.8% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 14,019 shares of the business services provider's stock valued at $687,000 after acquiring an additional 1,362 shares in the last quarter. Janney Montgomery Scott LLC grew its stake in Kforce by 3.8% during the 1st quarter. Janney Montgomery Scott LLC now owns 35,834 shares of the business services provider's stock valued at $1,752,000 after acquiring an additional 1,311 shares in the last quarter. Finally, Northern Trust Corp grew its stake in Kforce by 5.6% during the 4th quarter. Northern Trust Corp now owns 258,765 shares of the business services provider's stock valued at $14,672,000 after acquiring an additional 13,811 shares in the last quarter. Institutional investors and hedge funds own 92.77% of the company's stock.

About Kforce

Kforce Inc provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security.