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View All NewsASGN revenue up 17.1% in Q2, commercial segment rises 19.4%
ASGN Inc. (NYSE: ASGN) reported revenue rose 17.1% year over year in the second quarter. The increase includes $36.3 million from businesses acquired in 2021.
Revenue surpassed previous guidance as ASGN’s business continued to build momentum, CEO Ted Hanson said in a statement.
“The continued acceleration of our top line was largely driven by the strength of our commercial segment, which grew 19.4% over last year, with consulting revenues up 53.9% year over year,” Hanson said. “Our government business also remained solid, with federal government segment revenues improving 11.0% year over year, including flat organic growth on a difficult comparable.”
| (US$ millions) | Q2 2022 | Q2 2021 | % change |
| Revenue | $1,141.8 | $974.9 | 17.1% |
| Gross profit | $344.0 | $276.3 | 24.5% |
| Gross margin | 30.1% | 28.3% | |
| Net income | $72.5 | $64.2 | 12.9% |
Earlier this month, ASGN completed the acquisition of GlideFast Consulting — a ServiceNow partner and IT consulting, implementation and development company — for $350.0 million in cash.
Separately, the company’s board approved a new two-year, $400 million stock repurchase program.
Revenue by segment
| (US$ millions) | Q2 2022 | Q2 2021 | % change |
| Commercial | $850.6 | $712.5 | 19.4% |
| Federal government | $291.2 | $262.4 | 11.0% |
ASGN’s commercial segment includes IT and marketing/creative staffing — the company’s Apex and CyberCoders businesses, among others — while its federal government business provides solutions to the federal government.
Guidance
ASGN forecasts third-quarter revenue will rise between 10.2% and 12.0%.
Share and market cap
Shares in ASGN were up 6.09%to $103.07 as of 2:25 p.m. Eastern time, they were 31.71% above their 52-week low, according to FT.com. The company had a market cap of $4.96 billion.