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Sep 30, 2023
Kforce Q3 2023 Earnings Report
Reported revenue of $373.1 million and EPS of $0.54, with adjusted EPS at $0.90.
Key Takeaways
Kforce reported third quarter revenue of $373.1 million and earnings per share of $0.54, or $0.90 as adjusted for certain charges. The company experienced a sequential and year-over-year decrease in revenue but noted an improvement in consultant retention and new project starts towards the end of the quarter.
Revenue for Q3 2023 was $373.1 million, a decrease of 4.1% sequentially and 14.7% year-over-year.
As reported, diluted earnings per share for the quarter ended September 30, 2023 were $0.54 per share, a decrease of 50% year-over-year. As adjusted, diluted earnings per share were $0.90, a decrease of 17% year-over-year.
Overall Technology revenue decreased 3.9% sequentially and 13.4% year-over-year.
The Board of Directors approved a fourth quarter cash dividend of $0.36 per share.
Revenue by Segment
Forward Guidance
Kforce provided guidance for the fourth quarter of 2023, including revenue between $359 million and $367 million and earnings per share between $0.74 and $0.82.
Positive Outlook
- Revenue of $359 million to $367 million
- Earnings per share of $0.74 to $0.82
- Gross profit margin of 27.2% to 27.4%
- Flex gross profit margin of 25.6% to 25.8%
- Operating margin of 5.4% to 5.8%
Challenges Ahead
- SG&A expense as a percent of revenue of 21.3% to 21.5%
- WASO of 19.3 million
- Effective tax rate of 25.0%
- There will be 61 billing days, which is two fewer compared to the third quarter of 2023
- Uncertainty remains in the macro environment
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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