NYSE$KFRC

Kforce Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported second quarter 2020 results with revenue increasing year over year.

Kforce reported Q2 2020 revenue of $343.0 million, a 1.2% increase year-over-year. EPS was $0.47. The company's technology business declined 3.0% year-over-year, while FA Flex revenue increased 28.7% year-over-year, including revenue from COVID-19 related business.

  • Revenue for the quarter ended June 30, 2020 was $343.0 million, up 1.2% from $338.9 million in the same quarter of 2019.
  • Flex revenue increased 3.4% to $336.4 million, while Tech Flex revenue declined 3.0% to $251.9 million.
  • Direct Hire revenue decreased 51.1% to $6.6 million.
  • Income from continuing operations was $9.9 million, or $0.47 per share, compared to $16.1 million, or $0.66 per share, in the prior year.

Headline financials

Total Revenue

$343M

Previous: $339M+1.2%
EPS (adj)

$0.47

Previous: $0.66-28.8%
Capital Expenditures

-$3.79M

Previous: -$4.18M+9.3%
Free Cash Flow

$6.09M

Previous: $70.7M-91.4%
Net Income

$9.89M

Previous: $74.9M-86.8%
Operating Income

$15.4M

Previous: $21.5M-28.1%
Gross Profit

$97.4M

Previous: $101M-3.6%
Cash & Equivalents

$52.4M

Previous: $65M-19.5%
Total Assets

$439M

Previous: $426M+3.0%
Stock-Based Comp

$2.9M

Previous: $2.43M+19.5%

Revenue & EPS history

Kforce · Revenue · Quarterly

$343M

Q2 2020+1.2%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Kforce · $373M total across 2 segments · Q3 2023

  • Technology
    $338M-13.4%
  • Finance and Accounting
    $34.8M-26.1%

Forward guidance

Kforce anticipates revenue between $352 million and $362 million and earnings per share between $0.72 and $0.80 for Q3 2020.

Tailwinds

  • Revenue of $352 million to $362 million
  • Earnings per share of $0.72 to $0.80
  • Gross profit margin of 28.2% to 28.4%
  • Flex gross profit margin of 26.9% to 27.1%
  • Operating margin of 6.3% to 6.7%

Headwinds

  • SG&A expense as a percent of revenue of 21.3% to 21.5%
  • Effective tax rate of 26.8%
  • COVID-19 related initiatives possibly shorter-term in nature and likely non-recurring in nature
  • Impacts (direct and indirect) of COVID-19 on our business, our consultants and employees, and the overall economy
  • Risk of contract performance, delays or termination or the failure to obtain new assignments or contracts, or funding under contracts

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 Q2 2020

Historical avgQ2 2020

+2.0%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+5.0%

Avg return

30 days after

54%

35 / 65 earnings

Positive

+43.3%

Q1 2026

Best reaction

-21.9%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+43.3%+37.6%+39.6%
Q4 2025-3.8%-1.6%-24.1%
Q3 2025+28.5%+22.8%+21.1%
Q1 2025-14.4%-9.7%-4.4%
Q4 2024+1.0%-4.0%-6.2%
Q3 2024+4.6%+2.4%+9.3%
Q2 2024+2.6%-4.5%-4.4%
Q1 2024-3.7%-0.2%-5.3%
Q4 2023-0.9%+0.7%+3.9%
Q3 2023+7.6%+8.5%+22.4%
Q2 2023-5.7%-6.6%+0.0%
Q1 2023-5.7%+0.9%+12.1%
Q4 2022-0.2%+1.1%+7.1%
Q3 2022-7.7%-10.9%-6.8%
Q2 2022-6.0%-12.0%-16.9%
Q1 2022+4.4%+3.2%-6.7%
Q4 2021+10.4%+4.0%+1.9%
Q3 2021+7.3%+16.9%+13.2%
Q2 2021-5.1%-2.0%-4.9%
Q1 2021+10.2%+7.4%+12.0%
Q4 2020+4.5%+3.4%+19.1%
Q3 2020+11.7%+5.6%+19.3%
Q2 2020+27.1%+21.0%+12.0%
Q1 2020-0.1%-1.8%+9.2%
Q4 2019-7.4%-9.6%-12.5%
Q3 2019+2.2%+3.9%-1.2%
Q2 2019-5.2%-8.2%-10.3%
Q1 2019-1.8%+0.5%-3.5%
Q4 2018+6.4%+9.5%+5.8%
Q3 2018-10.7%-7.1%-9.9%
Q2 2018+9.9%+12.7%+11.2%
Q1 2018+11.3%+17.3%+26.7%
Q4 2017+2.1%-0.2%+17.0%
Q3 2017+12.9%+15.1%+28.7%
Q2 2017-1.6%-2.4%-3.7%
Q1 2017-7.8%-7.3%-18.5%
Q4 2016+9.0%+9.7%+11.3%
Q3 2016-3.5%-4.9%+26.8%
Q2 2016-10.4%-6.6%+4.5%
Q1 2016-5.5%
Q4 2015-21.9%
Q3 2015-8.5%
Q2 2015+19.1%
Q1 2015+3.9%
Q4 2014-5.0%
Q3 2014+9.9%
Q2 2014-5.5%
Q1 2014+9.2%
Q4 2013+15.5%
Q3 2013+12.8%
Q2 2013+11.0%
Q1 2013-16.2%
Q4 2012+16.2%
Q3 2012-5.9%
Q2 2012-8.9%
Q1 2011+0.9%
Q1 2012-5.0%
Q4 2009+2.0%
Q2 2010+2.0%
Q4 2011+2.0%
Q3 2011-6.6%
Q3 2010-6.6%
Q2 2011+1.6%
Q4 2010+1.6%
Q1 2010+3.3%

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