NYSE$KFRC

Kforce Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported fourth quarter revenue of $419.7 million, up 2.3% year-over-year.

Kforce reported Q4 2022 revenue of $419.7 million, a 2.3% increase year-over-year. Technology revenue increased by 7.6% year-over-year, while FA revenue decreased by 26.4%. The Board of Directors approved a 20% increase in the dividend and increased the share buyback authorization to $100 million.

  • Revenue for the quarter ended December 31, 2022 was $419.7 million, a 2.3% increase year-over-year.
  • Technology revenue increased 7.6% year-over-year.
  • FA revenue decreased 26.4% year-over-year.
  • As adjusted, operating margins were 6.2% for the quarter ended December 31, 2022, which increased 20 basis points year-over-year.

Headline financials

Total Revenue

$420M

Previous: $410M+2.3%
EPS (adj)

$0.93

Previous: $0.98-5.1%
Flex Gross Profit Margin

26.4%

No prior period
Operating Margin

6.2%

No prior period
Capital Expenditures

$3.45M

Previous: $1.42M+144.0%
Free Cash Flow

$9.29M

Previous: $11.5M-19.5%
Net Income

$7.07M

Previous: $20.6M-65.7%
Operating Income

$24M

Previous: $24.8M-3.4%
Gross Profit

$119M

Previous: $120M-0.4%
Cash & Equivalents

$121K

Previous: $97M-99.9%
Total Assets

$392M

Previous: $503M-22.1%
Stock-Based Comp

$4.36M

Previous: $3.55M+22.8%

Revenue & EPS history

Kforce · Revenue · Quarterly

$420M

Q4 2022+2.3%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Kforce · $420M total across 2 segments · Q4 2022

  • Technology
    $373M+7.6%
  • Finance and Accounting
    $47M-26.4%

Forward guidance

Kforce provided guidance for the first quarter of 2023.

Tailwinds

  • Revenue of $406 million to $414 million
  • Earnings per share of $0.78 to $0.86
  • Gross profit margin of 28.1% to 28.3%
  • Flex gross profit margin of 26.4% to 26.6%
  • Effective tax rate of 27.3%

Headwinds

  • SG&A expense as a percent of revenue of 22.2% to 22.4%
  • Operating margin of 5.4% to 5.8%
  • Weighted-average shares outstanding (“WASO”) of 19.7 million
  • There will be 64 billing days compared to 61 billing days in the fourth quarter of 2022
  • There will be 64 billing days compared to 64 billing days in the first quarter of 2022

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 Q4 2022

Historical avgQ4 2022

+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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