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

ASGN (NYSE:EFOR) posted its quarterly earnings results on Wednesday. The company reported $0.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.82 by $0.09, Briefing.com reports. ASGN had a return on equity of 10.30% and a net margin of 2.46%.The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $983.00 million. During the same quarter in the previous year, the firm earned $1.17 EPS. ASGN’s quarterly revenue was down 1.3% compared to the same quarter last year. 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 Price Performance

NYSE EFOR traded up $4.08 during trading hours on Thursday, hitting $27.49. The company’s stock had a trading volume of 1,852,741 shares, compared to its average volume of 1,055,729. ASGN has a 12 month low of $16.90 and a 12 month high of $54.94. The stock has a 50 day moving average price of $19.52. 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 company has a market capitalization of $1.13 billion, a P/E ratio of 12.16 and a beta of 0.52.

Institutional Trading of ASGN

A number of institutional investors have recently made changes to their positions in EFOR. Russell Investments Group Ltd. grew 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 worth $3,032,000 after acquiring an additional 32,437 shares during the period. New South Capital Management Inc. raised its position in ASGN by 39.2% in the fourth quarter. New South Capital Management Inc. now owns 635,011 shares of the company’s stock worth $30,588,000 after acquiring an additional 178,895 shares during the period. Parallel Advisors LLC grew its position in shares of ASGN by 190.8% during the 4th quarter. Parallel Advisors LLC now owns 1,390 shares of the company’s stock valued at $67,000 after acquiring an additional 912 shares during the period. Finally, Horizon Investments LLC purchased a new stake in shares of ASGN in the 3rd quarter worth $515,000. Hedge funds and other institutional investors own 95.36% of the company’s stock.

Trending Headlines about ASGN

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

Wall Street Analyst Weigh In

A number of analysts have weighed in on EFOR shares. UBS Group reduced their price objective on shares of ASGN from $35.00 to $17.00 and set a “sell” rating for the company in a research note on Friday, May 22nd. Weiss Ratings cut shares of ASGN from a “sell (d+)” rating to a “sell (d)” rating in a report on Wednesday, May 6th. Robert W. Baird reduced their price target on shares of ASGN from $62.00 to $38.00 and set a “neutral” rating for the company in a research report on Thursday, April 23rd. 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. Finally, Truist Financial upgraded shares of ASGN from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $33.00 to $36.00 in a report on Wednesday, July 22nd. 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. According to data from MarketBeat, ASGN currently has a consensus rating of “Reduce” and an average price target of $28.67.

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.