ASGN Earnings Prediction
The chart below shows how ASGN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ASGN sees a -1.46% change in stock price 10 days leading up to the earnings, and a -2.93% change 10 days following the report. On the earnings day itself, the stock moves by -0.32%. This data can give you a slight idea of what to expect for the next quarter's release.
ASGN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
985.00M
-8.30%
-4.46%
Gross Margin
27.62%
3.37%
-0.58%
Operating Margin
7.73%
-0.39%
1.05%
Net Margin
4.30%
-8.12%
-6.72%
EPS
0.95
-11.21%
-10.38%
No Data Available
ASGN Earnings Analysis
ASGN Inc Corporation (ASGN.N) Earnings Conference Call
Positive
IT Consulting Revenue Increase: IT consulting revenues comprised approximately 58% of total revenues for the year, up from roughly 53% in the prior year period, indicating a strategic shift towards higher-value services.
Consulting Bookings Performance: Consulting bookings for Q4 totaled $348.2 million, resulting in a book-to-bill ratio of 1.2 times for the quarter and 1.1 times on a trailing 12-month basis, reflecting strong demand for consulting services.
Gross Margin Improvement: Gross margin for Q4 was 29%, an increase of 60 basis points year-over-year, exceeding expectations and driven by a higher mix of consulting revenues.
Strong Cash Generation: Free cash flow for Q4 was $88.9 million, representing a conversion rate of approximately 81% of adjusted EBITDA, demonstrating strong cash generation capabilities.
TopBloc Acquisition Impact: The acquisition of TopBloc is expected to generate approximately $150 million in revenue for 2025, representing year-over-year growth in excess of 20%, enhancing ASGN's market position in ERP services.
Negative
Revenue Decline Analysis: Revenues totaled $985 million, a decrease of 8.3% year-over-year, indicating a significant decline in overall financial performance.
Assignment Revenue Decline: Assignment revenues totaled $408 million, reflecting a decline of 15% year-over-year due to continued softness in the more cyclical portion of the commercial business.
Federal Government Revenue Decline: Revenues from the Federal Government segment were $292.3 million, a decrease of 10.2% year-over-year, highlighting challenges in government contracts.
License Revenue Shortfall: License revenues were lower than expectations by approximately $20 million to $30 million for the quarter, contributing to the overall revenue shortfall.
Revenue Guidance Decline: The first quarter guidance estimates revenues of $950 million to $970 million, indicating a potential decline compared to the previous quarter's performance.
ASGN FAQs
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ASGN Earning Call Sentiment
ASGN Incorporated (NYSE:ASGN) Q4 2024 Earnings Call Transcript
ASGN.N
-3.6%Positive
The earnings call reveals mixed results: a decline in total revenues and federal segment revenues, but an increase in commercial consulting revenues and gross margins. The Q&A section reflects uncertainty about government contracts and unclear management responses, slightly dampening sentiment. Despite strong consulting performance, revenue guidance is weak. The TopBloc acquisition is a strategic positive, but overall, the market is expected to react neutrally due to the mixed financial performance and guidance, aligning with the company's mid-cap status.
