ASGN (NYSE: ASGN), an IT services and solutions provider that ranks as the fourth-largest IT staffing firm, reported the market roughly held steady in the third quarter. The company also expects market conditions to remain consistent heading into the fourth quarter.

Revenue at ASGN fell 7.7% in the third quarter to $1.03 billion. The decline was within guidance. Both commercial and federal government revenue fell.

“Market demand for ASGN’s services remained stable in the third quarter,” CEO Ted Hanson said in a conference call with analysts. “Q3 2024 revenues of $1.031 billion were similar to the second quarter and within our guidance range. In terms of profitability, adjusted EBITDA margin* of 11.3% was at the midpoint of our guidance range and reflects the continued evolution of our business toward higher-end, high-value consulting solutions.”

Gross margin improved to 29.1% from 28.9% in the year-ago quarter, though net income declined 20.0%.

“Despite relatively consistent top-line results, global economic uncertainty remains,” Hanson said. “As a result, we have yet to see a meaningful increase in client IT services spending.”

However, clients still have long-term digital transformation goals that are crucial to maintaining their competitive advantage, he said.

ASGN - Q3 2024

Revenue by Segment

Guidance

“We expect market conditions and demand for our services in the fourth quarter to be similar to that of the third quarter,” CFO Marie Perry said in a conference call with analysts. “While third quarter bookings indicate a solid pipeline of work, we do not anticipate an uptick in our clients’ IT spend in the fourth quarter.”

ASGN forecast fourth-quarter revenue to be down between 6.0% and 7.8% year over year.

Share Price

Shares in ASGN were down 0.88% to $92.23 as of 12:55 p.m. Eastern time today. They were 13.34% below their 52-week high.

*Calculated on a same-billing day basis.