NYSE$KFRC

Kforce Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported revenue of $373.1 million and EPS of $0.54, with adjusted EPS at $0.90.

Kforce reported third quarter revenue of $373.1 million and earnings per share of $0.54, or $0.90 as adjusted for certain charges. The company experienced a sequential and year-over-year decrease in revenue but noted an improvement in consultant retention and new project starts towards the end of the quarter.

  • Revenue for Q3 2023 was $373.1 million, a decrease of 4.1% sequentially and 14.7% year-over-year.
  • As reported, diluted earnings per share for the quarter ended September 30, 2023 were $0.54 per share, a decrease of 50% year-over-year. As adjusted, diluted earnings per share were $0.90, a decrease of 17% year-over-year.
  • Overall Technology revenue decreased 3.9% sequentially and 13.4% year-over-year.
  • The Board of Directors approved a fourth quarter cash dividend of $0.36 per share.

Headline financials

Total Revenue

$373M

Previous: $438M-14.7%
EPS (adj)

$0.90

Previous: $1.09-17.4%
Gross Profit Margin

27.7%

No prior period
Operating Margin

4.3%

No prior period
Capital Expenditures

-$6.08M

Previous: -$4.66M-30.5%
Free Cash Flow

$4.5M

Previous: $17.6M-74.4%
Net Income

$10.6M

Previous: $22.3M-52.5%
Operating Income

$16M

Previous: $31.3M-48.8%
Gross Profit

$103M

Previous: $127M-18.3%
Cash & Equivalents

$122K

Previous: $5.09M-97.6%
Total Assets

$370M

Previous: $413M-10.4%
Stock-Based Comp

$5.97M

Previous: $4.45M+34.2%

Revenue & EPS history

Kforce · Revenue · Quarterly

$373M

Q3 2023-14.7%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
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 provided guidance for the fourth quarter of 2023, including revenue between $359 million and $367 million and earnings per share between $0.74 and $0.82.

Tailwinds

  • Revenue of $359 million to $367 million
  • Earnings per share of $0.74 to $0.82
  • Gross profit margin of 27.2% to 27.4%
  • Flex gross profit margin of 25.6% to 25.8%
  • Operating margin of 5.4% to 5.8%

Headwinds

  • SG&A expense as a percent of revenue of 21.3% to 21.5%
  • WASO of 19.3 million
  • Effective tax rate of 25.0%
  • There will be 61 billing days, which is two fewer compared to the third quarter of 2023
  • Uncertainty remains in the macro environment

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

+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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