NYSE$EFOR

ASGN Incorporated · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

ASGN exceeded expectations for the quarter.

ASGN Incorporated reported strong Q3 2020 results, with revenues up 0.9% year-over-year and 8.0% sequentially, reaching $1.01 billion. Net income was $52.3 million, and adjusted EBITDA was $113.3 million.

  • Revenues were $1.01 billion, up 0.9 percent year-over-year and up 8.0 percent sequentially
  • Net income was $52.3 million ($0.99 per diluted share), down 8.9 percent year-over-year and up 7.2 percent sequentially
  • Adjusted Net Income was $67.1 million ($1.27 per diluted share), down 3.7 percent year-over-year and up 8.8 percent sequentially
  • Free Cash Flow was $81.9 million, or 8.1 percent of revenues

Headline financials

Total Revenue

$1.01B

Previous: $1B+0.9%
EPS (adj)

$1.27

Previous: $1.31-3.1%
Capital Expenditures

$5.7M

Previous: $6.9M-17.4%
Free Cash Flow

$81.9M

Previous: $84.4M-3.0%
Net Income

$52.3M

Previous: $57.4M-8.9%
Operating Income

$80.9M

Previous: $90.9M-11.0%
Gross Profit

$271M

Previous: $291M-7.0%
Cash & Equivalents

$230M

Previous: $67.5M+240.3%
Total Assets

$3.21B

Previous: $2.83B+13.4%
Stock-Based Comp

$7M

Previous: $7.8M-10.3%

Revenue & EPS history

ASGN · Revenue · Quarterly

$1.01B

Q3 2020+0.9%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

ASGN · $723M total across 1 segment · Q3 2020

  • Assignment Revenue
    $723M

Forward guidance

The Company is providing financial estimates for the fourth quarter of 2020, which are based on recent operating trends in the business and assume no significant deterioration in the markets ASGN serves.

Tailwinds

  • Revenues are expected to be between $968.0 million and $988.0 million.
  • Gross margin is expected to be between 26.7% and 26.9%.
  • Adjusted EBITDA is expected to be between $101.0 million and $106.0 million.
  • Adjusted Net Income per diluted share is expected to be between $1.09 and $1.16.
  • Revenues per Billable Day are estimated to increase approximately 4.0 to 4.5 percent sequentially.

Headwinds

  • Commercial revenues are expected to be flat-to-down sequentially because of 3.5 fewer Billable Days in the fourth quarter compared with the third quarter.
  • Sequentially, revenues are expected to be down because of 3.5 fewer Billable Days and lower revenues on certain cost reimbursable contracts
  • Net income is expected to be between $44.4 million and $48.1 million.
  • Earnings per diluted share are expected to be between $0.83 and $0.90.
  • Effective tax rate is estimated to be 27.0 percent.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-1.3%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-1.9%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+11.3%

Q2 2025

Best reaction

-52.2%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-52.2%-45.3%-51.9%
Q4 2025-0.4%-7.4%-19.5%
Q3 2025-7.9%-6.1%-11.0%
Q2 2025+11.3%+7.0%+8.2%
Q1 2025-11.6%-13.1%-8.5%
Q4 2024-5.9%-9.6%-18.9%
Q3 2024+1.3%+1.4%-3.7%
Q2 2024+3.3%+3.3%+5.5%
Q1 2024-2.0%-2.1%-5.4%
Q4 2023+1.0%+2.7%+9.1%
Q3 2023+5.5%+4.7%+17.0%
Q2 2023-3.2%-6.1%-0.6%
Q1 2023-5.2%-2.9%-10.0%
Q4 2022-7.5%-3.8%-13.4%
Q3 2022-11.2%-11.1%-5.6%
Q2 2022+7.0%+9.7%+4.4%
Q1 2022+3.0%-0.4%-15.8%
Q4 2021-3.4%-5.5%-8.8%
Q3 2021+0.9%+4.1%+4.5%
Q2 2021+4.2%+3.6%+16.6%
Q1 2021-2.5%-2.6%-4.0%
Q4 2020+0.2%+0.0%+7.1%
Q3 2020-2.6%+0.3%+16.4%
Q2 2020+5.9%+3.2%+9.6%
Q1 2020+10.5%+9.0%+28.3%
Q4 2019-5.1%-7.6%-39.9%
Q3 2019+3.8%+6.6%+6.5%
Q2 2019+0.9%+2.2%-2.3%
Q1 2019-7.4%-6.2%-20.5%
Q4 2018-0.6%+1.8%-0.9%
Q3 2018+4.8%+3.5%+6.9%
Q2 2018+10.1%+5.5%+8.4%
Q1 2018+0.7%-1.6%-4.5%
Q4 2017+3.6%-3.1%+2.4%
Q3 2017+5.6%+4.6%+11.7%
Q2 2017-8.6%-7.6%-14.7%
Q1 2017+9.1%+4.4%+6.7%
Q4 2016+3.2%+5.9%+4.7%
Q3 2016-8.8%-6.3%+16.7%
Q2 2016-9.4%-9.2%-6.0%
Q1 2016+0.2%
Q4 2015+7.1%
Q3 2015+9.8%
Q2 2015+2.9%
Q1 2015-13.2%
Q4 2014+2.1%
Q3 2014-4.7%
Q2 2014-23.2%
Q1 2014-2.2%
Q4 2013+5.0%
Q3 2013-5.3%
Q2 2013+10.5%
Q1 2013+6.9%
Q4 2012-11.6%
Q3 2012-2.5%
Q2 2012+7.5%
Q1 2011-0.8%
Q1 2012+3.5%
Q4 2011-1.2%
Q4 2009-1.2%
Q3 2010-2.5%
Q3 2011-2.5%
Q2 2011-3.4%
Q2 2010-3.4%
Q4 2010-3.4%
Q1 2010-2.2%

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