RICHMOND, Va. - ASGN (NYSE:ASGN) Incorporated (NYSE: ASGN), a prominent IT services and solutions provider, announced its financial results for the first quarter ended March 31, 2024. The company reported a slight earnings beat with adjusted EPS of $1.16, surpassing the analyst consensus by $0.02. Revenues reached $1.05 billion, exceeding the consensus estimate of $1.04 billion.
Despite the revenue outperformance, ASGN's stock declined by 2.16% following the announcement, indicating investor concerns.
ASGN's CEO Ted Hanson commented on the quarter's achievements, highlighting the near top-end results for revenues and adjusted EBITDA, which was $108.3 million or 10.3% of revenues. He also noted the growth in IT consulting revenues, which now represent 56.7% of consolidated revenues, up from 50.4% in the previous year. Hanson expressed confidence in ASGN's positioning for future IT spending growth, despite current client caution in IT expenditures.
Compared to the same quarter last year, consolidated revenues saw a 7.1% decrease. The Commercial Segment experienced a 12.1% decline, while the Federal Government Segment revenues increased by 7.0% YoY. The company's gross margin for the quarter was 28.2%, a slight decrease from the first quarter of 2023, primarily due to a higher mix of revenues from the Federal Government Segment, which typically has lower margins.
For the second quarter of 2024, ASGN provided financial estimates with revenues ranging from $1.034.5 million to $1.054.5 million. The midpoint of this guidance, $1.044.5 million, is slightly above the analyst consensus of $1.04 billion. Adjusted EBITDA is estimated to be between $114.0 million and $119.0 million, with the midpoint at $116.5 million. Adjusted net income per diluted share is forecasted to be in the range of $1.28 to $1.36.
The company's balance sheet remains solid, with $158.4 million in cash and cash equivalents and full availability under its $500.0 million Senior Secured Revolving Credit Facility. In addition, ASGN's Board of Directors approved a new two-year $750 million stock repurchase program, the largest in the company's history.
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