NYSE$EFOR

ASGN Incorporated · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported financial results for the quarter, with revenues in line with guidance and adjusted EBITDA margin exceeding guidance.

ASGN Incorporated reported third-quarter results with revenues of $1.12 billion, surpassing the midpoint of their guidance. The adjusted EBITDA margin of 12.3 percent exceeded the top end of their guidance. The company repurchased 1.1 million shares for $91.3 million.

  • Revenues were $1.12 billion.
  • Net income was $59.4 million.
  • Adjusted EBITDA was $137.5 million, representing 12.3 percent of revenues.
  • Operating cash flows were $147.5 million and Free Cash Flow was $137.7 million.

Headline financials

Total Revenue

$1.12B

Previous: $1.2B-6.8%
EPS (adj)

$1.68

Previous: $1.79-6.1%
Commercial Segment Book-to-Bill

1.2

No prior period
Federal Segment Book-to-Bill

0.9

Previous: 1.9-52.6%
Capital Expenditures

-$9.8M

Previous: $8.6M-214.0%
Free Cash Flow

$138M

Previous: $79.5M+73.2%
Net Income

$59.4M

Previous: $73.2M-18.9%
Operating Income

$98.6M

Previous: $108M-9.0%
Gross Profit

$322M

Previous: $359M-10.2%
Cash & Equivalents

$146M

Previous: $211M-31.1%
Total Assets

$3.58B

Previous: $3.61B-0.9%
Stock-Based Comp

$10.3M

Previous: $11.9M-13.4%

Revenue & EPS history

ASGN · Revenue · Quarterly

$1.12B

Q3 2023-6.8%vs Q3 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

ASGN · $508M total across 1 segment · Q3 2023

  • Assignment Revenue
    $508M

Forward guidance

The company's financial estimates for the fourth quarter of 2023 are based on current operating trends and assume no significant deterioration in the markets ASGN serves nor any possible revenue declines associated with a potential government shutdown.

Tailwinds

  • Revenue between $1,042.5 million and $1,062.5 million
  • Net income between $46.2 million and $49.1 million
  • Diluted earnings per share between $0.97 and $1.03
  • Adjusted EBITDA between $115.5 million and $119.5 million
  • Adjusted Net Income per diluted share between $1.33 and $1.39

Headwinds

  • SG&A expenses between $193.0 million and $197.8 million
  • Amortization of intangible assets of $17.9 million
  • Gross margin between 28.0% and 28.3%
  • Effective tax rate of 28.0%
  • There are 60.0 Billable Days in the fourth quarter of 2023, which is the same as the year ago period and 2.5 fewer days than Q3 2023.

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 2023

Historical avgQ3 2023

-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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