S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
TAMPA - Kforce Inc. (NYSE:KFRC) reported second quarter earnings that met expectations but saw its shares tumble 8% after issuing third quarter guidance that fell short of analyst estimates.
The professional staffing firm posted Q2 adjusted earnings of $0.59 per share, matching analyst expectations, on revenue of $334.3 million, slightly above the consensus estimate of $333.72 million. While revenue increased 1.3% sequentially, it declined 6.2% YoY.
The company’s third quarter outlook disappointed investors, with Kforce projecting revenue of $324-332 million, below analyst expectations of $335.2 million. The midpoint of its EPS guidance range of $0.53-$0.61 also fell short of the $0.61 consensus.
"Against the backdrop of a macroeconomic environment that has faced heightened uncertainty for a prolonged period of time, we are pleased to have delivered sequential Flex (NASDAQ:FLEX) revenue growth in both our Technology and Finance and Accounting businesses in the second quarter," said Joseph J. Liberatore, President and Chief Executive Officer.
Technology Flex revenue, the company’s largest segment, increased 1.8% sequentially but decreased 5.0% YoY. Finance and Accounting Flex revenue rose 2.1% sequentially while declining 16.8% YoY.
Liberatore noted that the third quarter guidance "was affected by client specific dynamics as the quarter ended," which he believes is not indicative of the current stable demand environment. "We believe our clients continue to carry a significant backlog of strategically imperative technology investments that they expect to execute once greater positive visibility exists," he added.
During the quarter, Kforce returned $17.4 million to shareholders through share repurchases and dividends. The company also declared a Q3 cash dividend of $0.39 per share.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.