ASGN Inc. (NYSE: ASGN), a provider of IT services, solutions and staffing based in Glen Allen, Virginia, reported fourth-quarter revenue rose 9.2% year over year to $1.15 billion. CEO Ted Hanson said the full year represented record revenue performance, and the company is projecting “solid” growth in 2023.

Revenue was above the high end of guidance.

“It is clear that ASGN’s business has hit a positive inflection point,” Hanson said. “With consulting business representing 49% of total revenues in fourth quarter, we are quickly approaching 50% of our total revenues derived from high-end, higher-margin consulting work.”

The fourth quarter included $47.3 million from businesses acquired in the past 12 months. Excluding the impact of those acquisitions, and adjusting for billing days, fourth-quarter revenue rose 6.4%.

In the company’s commercial segment, revenue rose 7.8%. In the federal government segment, it was up 13.3%.

Revenue in the commercial segment’s IT services and solutions division rose 10.8% year over year in the fourth quarter. It represents the lion’s share of revenue in the segment, 84.9%. Growth was driven by consulting services and contributions from acquisitions. Also included in the segment are ASGN’s creative digital marketing and perm placement divisions, though revenue fell 6.4% year over year in these operations.

ASGN also noted revenue in its federal government segment, which rose 13.3%, benefited from the fourth-quarter acquisition of Iron Vine. Excluding Iron Vine, revenue was up 4.1% in the segment.

Guidance

ASGN forecast first-quarter revenue of between $1.14 billion and $1.16 billion.

Share price and market cap

Shares in ASGN were down 2.70% to $88.87 as of 11:13 a.m. Eastern time; they were 13.56% above their 52-week low, according to FT.com. The company had a market cap of $4.56 billion.