On Assignment revenue up 10%
October 28, 2016
On Assignment Inc. (NYSE: ASGN) reported revenue rose 10.0% in the third quarter to $629.4 million with the Apex division leading the growth. Net income rose 19.4% at the Calabasas, Calif.-based firm, although gross margin narrowed.
| (US$ thousands)
| Q3 2016
| Q3 2015
| % change
|
| Revenue
| $629,401
| $572,123
| 10.0%
|
| Gross profit
| $207,120
| $191,404
| 8.2%
|
| Gross margin
| 32.9%
| 33.5%
|
|
| Net income
| $29,768
| $24,925
| 19.4%
|
Quote
“We continue to be sensitive to and conscious of the fears of an economic slowdown in the US,” said President and CEO Peter Dameris in a conference call with analysts. “To date we have not seen a significant change in our customers’ normal purchasing behavior for our contract assignment services. We continue to see solid demand from the end markets we serve and continue to benefit from the improved productivity of our additional headcount that we added in the second half of 2014 and 2015.”
Revenue by segment
| (US$ thousands)
| Q3 2016
| Q3 2015
| % change
|
| Apex
| $473,600
| $422,600
| 12.1%
|
| Oxford
| $155,800
| $149,500
| 4.2%
|
Permanent placement revenue
| (US$ thousands)
| Q3 2016
| Q3 2015
| % change
|
| Apex
| $11,600
| $10,800
| 7.4%
|
| Oxford
| $21,400
| $22,000
| -2.7%
|
| Consolidated
| $33,000
| $32,800
| 0.6%
|
Gross margin by segment
|
| Q3 2016
| Q3 2015
|
| Apex
| 30.3%
| 30.6%
|
| Oxford
| 40.7%
| 41.6%
|
Average bill rates
|
| Q3 2016
| Q3 2015
|
| Apex
| $56.46
| $55.55
|
| Oxford
| $101.60
| $102.75
|
| Consolidated
| $62.45
| $61.84
|
Guidance
On Assignment estimates fourth-quarter revenue of $608.0 million to $618.0 million.
Share price and market cap
Shares in On Assignment fell 8.07% in early afternoon trading today to $32.82. The company had a market cap of $1.75 billion, according to Yahoo.
