ASGN beats Q3 expectations, shares edge higher

NEW YORK - ASGN Incorporated (NYSE:ASGN) reported third-quarter financial results that beat analyst expectations, with revenue reaching $1.01 billion compared to the consensus estimate of $1 billion. The IT services provider saw its shares rise 0.45% following the announcement as investors digested its fourth-quarter guidance.

The company posted adjusted earnings per share of $1.31, exceeding analyst expectations of $1.22. Revenue for the quarter declined 1.9% YoY from $1.03 billion in the same period last year. ASGN’s IT consulting business continued to show strength, accounting for approximately 63% of total revenues, up from 58% in the year-ago period.

"ASGN delivered a solid performance in the third quarter, with revenues, Adjusted EBITDA, and Adjusted EBITDA margin all at the high end of our guidance ranges," said Ted Hanson, ASGN’s Chief Executive Officer. "Although IT spending levels remained steady quarter-to-quarter, our commercial and government clients continue to acknowledge the importance of executing their key initiatives despite macroeconomic conditions."

Adjusted EBITDA was $112.6 million, representing 11.1% of revenues, compared with $116.9 million or 11.3% of revenues in the third quarter of 2024. The company’s Commercial Segment revenues totaled $711.3 million, while Federal Government Segment revenues were $300.1 million.

For the fourth quarter, ASGN forecasts revenue between $960 million and $980 million, compared to analyst consensus of $978.7 million. The company expects adjusted earnings per share of $1.12 to $1.20, versus the consensus estimate of $1.17.

During the quarter, ASGN repurchased approximately 0.9 million shares of its common stock for $46 million at an average price of $51.46 per share. The company had approximately $423 million remaining available at quarter end for repurchases under its stock repurchase plan.

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