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Sep 30, 2020
ASGN Q3 2020 Earnings Report
ASGN exceeded expectations for the quarter.
Key Takeaways
ASGN Incorporated reported strong Q3 2020 results, with revenues up 0.9% year-over-year and 8.0% sequentially, reaching $1.01 billion. Net income was $52.3 million, and adjusted EBITDA was $113.3 million.
Revenues were $1.01 billion, up 0.9 percent year-over-year and up 8.0 percent sequentially
Net income was $52.3 million ($0.99 per diluted share), down 8.9 percent year-over-year and up 7.2 percent sequentially
Adjusted Net Income was $67.1 million ($1.27 per diluted share), down 3.7 percent year-over-year and up 8.8 percent sequentially
Free Cash Flow was $81.9 million, or 8.1 percent of revenues
Revenue by Segment
Forward Guidance
The Company is providing financial estimates for the fourth 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
- Revenues are expected to be between $968.0 million and $988.0 million.
- Gross margin is expected to be between 26.7% and 26.9%.
- Adjusted EBITDA is expected to be between $101.0 million and $106.0 million.
- Adjusted Net Income per diluted share is expected to be between $1.09 and $1.16.
- Revenues per Billable Day are estimated to increase approximately 4.0 to 4.5 percent sequentially.
Challenges Ahead
- Commercial revenues are expected to be flat-to-down sequentially because of 3.5 fewer Billable Days in the fourth quarter compared with the third quarter.
- Sequentially, revenues are expected to be down because of 3.5 fewer Billable Days and lower revenues on certain cost reimbursable contracts
- Net income is expected to be between $44.4 million and $48.1 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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