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Jun 30, 2020
Kforce Q2 2020 Earnings Report
Reported second quarter 2020 results with revenue increasing year over year.
Key Takeaways
Kforce reported Q2 2020 revenue of $343.0 million, a 1.2% increase year-over-year. EPS was $0.47. The company's technology business declined 3.0% year-over-year, while FA Flex revenue increased 28.7% year-over-year, including revenue from COVID-19 related business.
Revenue for the quarter ended June 30, 2020 was $343.0 million, up 1.2% from $338.9 million in the same quarter of 2019.
Flex revenue increased 3.4% to $336.4 million, while Tech Flex revenue declined 3.0% to $251.9 million.
Direct Hire revenue decreased 51.1% to $6.6 million.
Income from continuing operations was $9.9 million, or $0.47 per share, compared to $16.1 million, or $0.66 per share, in the prior year.
Forward Guidance
Kforce anticipates revenue between $352 million and $362 million and earnings per share between $0.72 and $0.80 for Q3 2020.
Positive Outlook
- Revenue of $352 million to $362 million
- Earnings per share of $0.72 to $0.80
- Gross profit margin of 28.2% to 28.4%
- Flex gross profit margin of 26.9% to 27.1%
- Operating margin of 6.3% to 6.7%
Challenges Ahead
- SG&A expense as a percent of revenue of 21.3% to 21.5%
- Effective tax rate of 26.8%
- COVID-19 related initiatives possibly shorter-term in nature and likely non-recurring in nature
- Impacts (direct and indirect) of COVID-19 on our business, our consultants and employees, and the overall economy
- Risk of contract performance, delays or termination or the failure to obtain new assignments or contracts, or funding under contracts
Historical Earnings Impact
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Avg. Return Before/After Earnings
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