ASGN (NYSE:EFOR) Announces Earnings Results

ASGN (NYSE:EFOR) 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, FiscalAI reports. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $986.95 million. ASGN had a net margin of 2.46% and a return on equity of 10.30%. 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 Up 0.9%

Shares of EFOR traded up $0.20 during trading hours on Wednesday, reaching $23.45. The stock had a trading volume of 1,523,163 shares, compared to its average volume of 1,050,318. The company has a market cap of $963.79 million, a P/E ratio of 10.38 and a beta of 0.52. ASGN has a 52 week low of $16.90 and a 52 week high of $54.94. The company has a current ratio of 2.10, a quick ratio of 2.10 and a debt-to-equity ratio of 0.82. The company’s 50-day moving average is $19.52.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in EFOR. Parallel Advisors LLC raised its position in shares of ASGN by 190.8% during the fourth quarter. Parallel Advisors LLC now owns 1,390 shares of the company’s stock worth $67,000 after purchasing an additional 912 shares during the period. Horizon Investments LLC acquired a new position in shares of ASGN in the 3rd quarter valued at approximately $515,000. Russell Investments Group Ltd. grew its position in shares of ASGN by 96.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 30,497 shares of the company’s stock valued at $1,444,000 after purchasing an additional 15,011 shares during the period. Finally, New South Capital Management Inc. increased its stake in ASGN by 39.2% during 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 in the last quarter. 95.36% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

EFOR has been the topic of several recent research reports. UBS Group reduced their price target on ASGN from $35.00 to $17.00 and set a “sell” rating on the stock in a research report on Friday, May 22nd. Zacks Research raised ASGN from a “strong sell” rating to a “hold” rating in a research note on Monday, June 22nd. Wells Fargo & Company reduced their target price on ASGN from $54.00 to $33.00 and set an “equal weight” rating on the stock in a report on Thursday, April 23rd. Robert W. Baird reduced their target price on ASGN from $62.00 to $38.00 and set a “neutral” rating on the stock in a report on Thursday, April 23rd. Finally, Truist Financial upgraded ASGN from a “hold” rating to a “buy” rating and boosted their target price for the stock from $33.00 to $36.00 in a research report on Wednesday, July 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. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $29.83.

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.