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Sep 30, 2024

ASGN Q3 2024 Earnings Report

ASGN's Q3 2024 results reflected stable market demand with revenues within guidance and Adjusted EBITDA margin at the midpoint, driven by a shift towards high-value IT consulting.

Key Takeaways

ASGN Incorporated reported third quarter 2024 financial results, with revenues of $1.031 billion and net income of $47.5 million. The company's performance was driven by stable market demand and a continued shift towards higher-end IT consulting work.

Revenues reached $1.031 billion.

Net income amounted to $47.5 million.

Adjusted EBITDA was $116.9 million, representing 11.3 percent of revenues.

Approximately 1.0 million shares were repurchased for $95.6 million.

Total Revenue
$1.03B
Previous year: $1.12B
-7.7%
EPS
$1.43
Previous year: $1.68
-14.9%
ECS Book-to-bill ratio
0.9
Previous year: 0.9
+0.0%
Gross Profit
$300M
Previous year: $322M
-6.8%
Cash and Equivalents
$167M
Previous year: $146M
+14.4%
Free Cash Flow
$128M
Previous year: $138M
-7.1%
Total Assets
$3.43B
Previous year: $3.58B
-4.1%

ASGN

ASGN

ASGN Revenue by Segment

Forward Guidance

The Company's financial estimates for the fourth quarter of 2024 assume no deterioration in the markets ASGN serves and do not include any acquisition, integration, or strategic planning expenses.

Positive Outlook

  • Revenues are expected to be between $990.0 million and $1,010.0 million.
  • Net income is projected to be between $39.2 million and $42.1 million.
  • Earnings per diluted share are estimated to be between $0.88 and $0.94.
  • Adjusted EBITDA is anticipated to be between $103.0 million and $107.0 million.
  • Adjusted Net Income per diluted share is expected to be between $1.18 and $1.24.

Challenges Ahead

  • SG&A expenses are estimated to be between $197.8 million and $201.5 million.
  • Amortization of intangible assets is projected at $13.9 million.
  • Gross margin is expected to be between 28.4% and 28.6%.
  • The effective tax rate is estimated at 28.0%.
  • There are 2.5 fewer billable days than the third quarter of 2024.