ASGN says confidence up, though no turnaround in IT spend yet
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ASGN (NYSE: ASGN) reported increased confidence in the market, though an outright turnaround has not yet taken place. The IT staffing and solutions provider reported fourth-quarter revenue fell 8.3% year over year to $985.0 million. The decline was greater than the forecast of a 6.0% to 7.8% decrease.
“As we transition into 2025, we are beginning to see an improvement in business confidence, although we believe a turnaround in IT spending has yet to materialize,” CEO Ted Hanson said in a conference call.
ASGN’s earnings release follows recent announcements by the company that it’s planning to acquire Workday consultancy TopBloc for $340 million. It had also reported President Rand Blazer will transition to the role of executive vice chairman with Shiv Iyer succeeding him.
Hanson noted IT consulting revenue at the firm comprised 58% of total revenue in the fourth quarter, up from 53% in the year-ago quarter.
ASGN expects market conditions in the first quarter to be similar to the fourth quarter of 2024.
ASGN forecast first-quarter revenue of between $950.0 million and $970.0 million, a year-over-year decrease of between 7.5% and 9.4%. Guidance does not include a contribution from TopBloc.
ASGN – Q4 2024
(US$ millions) | Q4 2024 | Q4 2023 | % change |
Revenue | 985 | 1,074.10 | -8.3% |
Gross profit | 286 | 304.9 | -6.2% |
Gross margin | 29.0% | 28.4% | - |
Net income | 42.4 | 50.3 | -15.7% |
Revenue by Segment
(US$ millions) | Q4 2024 | Q4 2023 | % change |
Commercial | 692.7 | 748.6 | -7.5% |
Federal government | 292.3 | 325.5 | -10.2% |
Full-Year Earnings
(US$ millions) | FY 2024 | FY 2023 | % change |
Revenue | 4,099.70 | 4,450.60 | -7.9% |
Gross profit | 1,183.70 | 1,280.00 | -7.5% |
Gross margin | 28.9% | 28.8% | - |
Net income | 175.2 | 219.3 | -20.1% |
Share Price
Shares in ASGN were down 3.13% to $85.13 as of 10:46 a.m. Eastern time today. They set a new 52-week low during today’s session when they reached $81.64.