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Jun 30, 2023
Kforce Q2 2023 Earnings Report
Reported revenue of $389.2 million and earnings per share of $0.95.
Key Takeaways
Kforce's Q2 2023 results reflect an uncertain economic environment with revenue at $389.2 million and diluted earnings per share at $0.95. The company has reduced annualized operating costs by approximately $14 million to align with lower revenue levels.
Revenue for the quarter ended June 30, 2023, was $389.2 million, a decrease of 4.1% sequentially and 10.8% year-over-year.
Diluted earnings per share for the quarter ended June 30, 2023, were $0.95 per share, an increase of approximately 16% sequentially and a decrease of 27% year-over-year.
Gross profit margins of 28.3% increased 20 basis points sequentially and decreased 170 basis points year-over-year.
The Board of Directors approved a third quarter cash dividend of $0.36 per share to shareholders of record as of the close of business on September 15, 2023, which will be payable on September 29, 2023.
Revenue by Segment
Forward Guidance
Kforce provided guidance for the third quarter of 2023, anticipating revenue between $359 million and $367 million, and earnings per share between $0.60 and $0.68.
Positive Outlook
- Revenue of $359 million to $367 million
- Gross profit margin of 28.1% to 28.3%
- Flex gross profit margin of 26.0% to 26.2%
- Operating margin of 4.7% to 5.1%
- Effective tax rate of 29.2%
Challenges Ahead
- Earnings per share of $0.60 to $0.68
- SG&A expense as a percent of revenue of 22.9% to 23.1%
- WASO of 19.3 million
- Includes a charge of $5.5 million, or $0.22 per share, related to actions taken to reduce our structural costs.
- There will be 63 billing days, which is one fewer than the second quarter of 2023 and the third quarter of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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