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

ASGN (NYSE:EFOR) announced its quarterly earnings data on Wednesday. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.82 by $0.09, Briefing.com reports. The firm had revenue of $1.01 billion for the quarter, compared to analyst estimates of $983.00 million. ASGN had a return on equity of 9.53% and a net margin of 2.09%.The company’s revenue was down 1.3% on a year-over-year basis. During the same period in the prior year, the company 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 Trading Down 1.5%

Shares of EFOR stock traded down $0.41 during mid-day trading on Friday, reaching $27.16. The stock had a trading volume of 318,946 shares, compared to its average volume of 1,050,488. The company has a market capitalization of $1.12 billion, a price-to-earnings ratio of 14.00 and a beta of 0.52. The company has a 50-day moving average price of $19.69. The company has a quick ratio of 2.10, a current ratio of 2.10 and a debt-to-equity ratio of 0.82. ASGN has a 52-week low of $16.90 and a 52-week high of $54.94.

Analyst Ratings Changes

EFOR has been the subject of several research reports. Zacks Research raised ASGN from a “strong sell” rating to a “hold” rating in a research note on Monday, June 22nd. Jefferies Financial Group raised shares of ASGN from an “underperform” rating to a “hold” rating and decreased their price target for the stock from $28.00 to $22.00 in a research note on Friday, May 29th. BMO Capital Markets lowered shares of ASGN from an “outperform” rating to a “market perform” rating and set a $33.00 price objective for the company. in a report on Thursday, April 23rd. Wells Fargo & Company cut their price objective on shares of ASGN from $33.00 to $26.00 and set an “equal weight” rating for the company in a research note on Thursday. Finally, Robert W. Baird reduced their target price on shares of ASGN from $62.00 to $38.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. One equities 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 stock. According to data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $28.67.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of EFOR. Parallel Advisors LLC lifted its holdings in ASGN by 190.8% in the 4th quarter. Parallel Advisors LLC now owns 1,390 shares of the company’s stock worth $67,000 after buying an additional 912 shares during the period. Horizon Investments LLC bought a new stake in shares of ASGN in the 3rd quarter worth approximately $515,000. Russell Investments Group Ltd. increased its stake in shares of 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 buying an additional 15,011 shares during the period. Finally, New South Capital Management Inc. increased its stake in shares of ASGN by 39.2% during the fourth quarter. New South Capital Management Inc. now owns 635,011 shares of the company’s stock valued at $30,588,000 after buying an additional 178,895 shares during the period. Hedge funds and other institutional investors own 95.36% of the company’s stock.

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.