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View All NewsASGN revenue down 1.3% in Q4, but government business posts growth
ASGN Inc. (NYSE: ASGN) reported fourth-quarter revenue was down 1.3% year over year. The Glen Allen, Virginia-based professional staffing provider reported revenue fell in its commercial business but rose in its federal government business.
“Our significant exposure to mission-critical federal government work, combined with our ability to provide high-end digital transformation services to the commercial marketplace, helped insulate our business from swings in the economy,” President and CEO Ted Hanson said. “At the same time, our deployment model enabled our employees to work offsite and still provide the high level of service our clients expect.”
Acquisitions
ASGN also announced two acquisitions: Skyris LLC, a provider of remote sensing and data science expertise for defense and national security programs; and Integrated Solutions Management Inc., a ServiceNow partner in the federal government space.
Revenue
| (US$ millions) | Q4 2020 | Q4 2019 | % change |
| Revenue | $1,011.4 | $1,025.2 | -1.3% |
| Gross profit | $276.6 | $289.5 | -4.5% |
| Gross margin | 27.3% | 28.2% | |
| Net income | $55.4 | $39.3 | 41.0% |
Federal government revenue was up 12.7% in the fourth quarter while commercial revenue was down 5.5%.
Revenue by segment
| (US$ millions) | Q4 2020 | Q4 2019 | % change |
| Commercial | $748.2 | $791.7 | -5.5% |
| Federal government | $263.2 | $233.5 | 12.7% |
The federal government business is reported in ASGN’s ECS segment and the commercial business comprises the Apex and Oxford segments.
Full-year results
| (US$ millions) | 2020 | 2019 | % change |
| Revenue | $3,950.6 | $3,923.9 | 0.7% |
| Gross profit | $1,089.3 | $1,130.0 | -3.6% |
| Gross margin | 27.6% | 28.8% | |
| Net income | $200.3 | $174.7 | 14.7% |
Guidance
ASGN forecast first-quarter revenue of between $1.00 billion and $1.02 billion, a year-over-year increase of between 1.0% and 3.0%. The estimates are based on billing days. There will be one fewer billing day in the first quarter of 2021 than in the first quarter of 2020.
Share price and market cap
Shares in ASGN were down 3.66% to $90.97 as of 12:50 p.m. Eastern time; however, they had reached a 52-week high during the trading session so far when they hit $100.97, according to FT.com. ASGN had a market cap of $4.99 billion.