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

ASGN (NYSE:EFOR) released its earnings results on Wednesday. The company reported $0.91 EPS for the quarter, beating the consensus estimate of $0.82 by $0.09, FiscalAI reports. The firm had revenue of $1.01 billion during the quarter, compared to analysts’ expectations of $986.95 million. ASGN had a net margin of 2.09% and a return on equity of 9.53%. The business’s quarterly revenue was down 1.3% compared to the same quarter last year. 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 Stock Performance

Shares of NYSE EFOR opened at $28.10 on Friday. ASGN has a 52-week low of $16.90 and a 52-week high of $54.94. The company has a debt-to-equity ratio of 0.82, a quick ratio of 2.10 and a current ratio of 2.10. The firm’s fifty day moving average is $19.69. The company has a market capitalization of $1.15 billion, a PE ratio of 14.48 and a beta of 0.52.

Institutional Trading of ASGN

Hedge funds have recently modified their holdings of the company. Parallel Advisors LLC boosted its holdings in shares of 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 acquiring an additional 912 shares in the last quarter. Horizon Investments LLC acquired a new stake in ASGN during the 3rd quarter valued at $515,000. Russell Investments Group Ltd. boosted its stake in ASGN by 96.9% in the third quarter. Russell Investments Group Ltd. now owns 30,497 shares of the company’s stock worth $1,444,000 after purchasing an additional 15,011 shares in the last quarter. Finally, New South Capital Management Inc. grew its holdings 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 worth $30,588,000 after purchasing an additional 178,895 shares during the last quarter. Institutional investors and hedge funds own 95.36% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Weiss Ratings downgraded ASGN from a “sell (d+)” rating to a “sell (d)” rating in a research report on Wednesday, May 6th. UBS Group reduced their price objective on ASGN from $35.00 to $17.00 and set a “sell” rating for the company in a research report on Friday, May 22nd. Robert W. Baird decreased their price objective on ASGN from $62.00 to $38.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. Wells Fargo & Company lowered their price objective on ASGN from $33.00 to $26.00 and set an “equal weight” rating on the stock in a research report on Thursday. Finally, Jefferies Financial Group raised ASGN from an “underperform” rating to a “hold” rating and reduced their target price for the stock from $28.00 to $22.00 in a research report on Friday, May 29th. One research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Reduce” and an average target price of $28.67.

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.