•
Jun 30, 2020

ASGN Q2 2020 Earnings Report

Reported solid results with revenues exceeding internal expectations and illustrative scenarios.

Key Takeaways

ASGN Incorporated reported revenues of $936.8 million for Q2 2020, a 3.6% decrease year-over-year. Net income increased by 13.3% to $48.8 million, and free cash flow was $178.8 million, representing 19.1% of revenues. The company's government business remained strong, and they are reinstating guidance based on current trends.

Revenues were $936.8 million, down 3.6% year-over-year.

Net income was $48.8 million ($0.92 per diluted share), up 13.3 percent year-over-year.

Free cash flow was $178.8 million, representing 19.1% of revenues.

Commercial business declines flattened, while government business remained strong.

Total Revenue
$937M
Previous year: $972M
-3.7%
EPS
$1.17
Previous year: $1.18
-0.8%
Gross Profit
$261M
Previous year: $285M
-8.6%
Cash and Equivalents
$208M
Previous year: $40.1M
+418.5%
Free Cash Flow
$179M
Previous year: $88.1M
+103.0%
Total Assets
$3.07B
Previous year: $2.8B
+9.5%

ASGN

ASGN

ASGN Revenue by Segment

Forward Guidance

The Company is providing financial estimates for the third quarter of 2020, which are based on recent operating trends in the business and assume no significant deterioration in the markets ASGN serves.

Positive Outlook

  • Recent operating trends show a flattening of weekly revenues from our commercial divisions (Apex and Oxford Segments)
  • Continued high growth from our federal government business (ECS Segment).

Challenges Ahead

  • Any worsening of the COVID-19 pandemic could affect our results over the remainder of the quarter.
  • Estimates do not include any acquisition, integration or strategic planning expenses
  • Assumes no significant change in current foreign exchange rates.