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View All NewsASGN revenue up 17% in Q2 with strength in commercial segment
Professional staffing provider ASGN Inc.’s (NYSE: ASGN) revenue rose 17.2% in the second quarter, surpassing the high end of guidance. CEO Ted Hanson said demand for service was rising.
“Strength during the quarter was driven in part by growth in our commercial segment, where revenues improved 20.3% year over year due largely to the high performance of our consulting business,” Hanson said. Revenue in the company’s federal segment increased by 9.5%, in line with expectations.
The commercial segment includes Apex Systems, Creative Circle and CyberCoders.
| (US$ millions) | Q2 2021 | Q2 2020 | % change |
| Revenue | $974.9 | $831.9 | 17.2% |
| Gross profit | $276.3 | $227.5 | 21.5% |
| Gross margin | 28.3% | 27.3% | |
| Net income | $64.2 | $48.8 | 31.6% |
The company has completed six acquisitions since the beginning of 2020.
Earlier this month, ASGN announced the sale of its Oxford Global Resource business unit for $525 million and the acquisition of the Infor business unit of Avaap. The sale of Oxford is expected to be complete in the third quarter and financial results for Oxford Global were treated as discontinued operations in ASGN’s second-quarter earnings release.
Revenue by segment
| (US$ millions) | Q2 2021 | Q2 2020 | % change |
| Commercial | $712.5 | $592.2 | 20.3% |
| Federal government | $262.4 | $239.7 | 9.5% |
Guidance
ASGN forecast third-quarter revenue would be up year over year between 2.3% and 4.3%.
Share price and market cap
Shares in ASGN were up 4.73% to $102.05 as of 12:15 p.m. Eastern time; they were 7.66% below their 52-week high, according to FT.com. The company had a market cap of $5.18 billion.