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NEW YORK - ASGN Incorporated (NYSE:ASGN) shares rose 2.7% after the IT services provider reported second-quarter revenues that surpassed the high end of its guidance range, with adjusted earnings also beating analyst expectations.
The company posted revenues of $1.02 billion, exceeding analyst estimates of $995.52 million, while adjusted earnings per share came in at $1.17, above the consensus forecast of $1.08. ASGN’s IT consulting business, which now represents 63% of total revenues, grew to $638.2 million, up from $590.5 million in the same period last year, helping to offset continued softness in more cyclically sensitive segments.
"TopBloc, the newest addition to ASGN, is performing above our expectations and contributed to the continued growth of our IT consulting business," said Ted Hanson, ASGN’s Chief Executive Officer. The company achieved an adjusted EBITDA margin of 10.6%, reaching the top end of its expectations for the quarter.
Commercial Segment revenues totaled $708.1 million, down from $725.7 million in the second quarter of 2024, while Federal Government Segment revenues increased slightly to $312.5 million from $309.0 million. The company noted that its Consumer and Industrial vertical showed double-digit growth, while Healthcare remained flat and other verticals declined.
Despite macroeconomic uncertainty affecting discretionary spending, Hanson emphasized that clients remain focused on cloud and data solutions to modernize legacy systems and enable AI capabilities. The company reported strong bookings, with a commercial book-to-bill ratio of 1.2 to 1 and a federal government book-to-bill ratio of 1.1 to 1.
For the third quarter, ASGN forecasts revenues between $992 million and $1.01 billion, in line with analyst expectations of $1 billion, and adjusted earnings per share of $1.18 to $1.26, compared to the consensus estimate of $1.22.
The company also repurchased 200,000 shares of its common stock during the quarter for $9.5 million at an average price of $58.69 per share, with approximately $470 million remaining available for future repurchases.
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