Overview
IT solutions provider's Q4 revenue slightly beat analyst expectations
Adjusted EPS for Q4 missed analyst expectations
Company had announced it would acquire Quinnox Inc. for $290 mln to boost digital engineering
Outlook
ASGN projects Q1 2026 revenue between $960 mln and $980 mln
Company expects Q1 2026 adjusted EBITDA between $93.5 mln and $98.5 mln
Result Drivers
IT CONSULTING - IT consulting revenues increased to 63% of total revenues, driven by growth in the Commercial Segment
COMMERCIAL SEGMENT GROWTH - Growth in healthcare and consumer industries contributed to Commercial Segment revenue increase
FEDERAL SEGMENT DECLINE - Federal Government Segment revenues declined due to loss of higher margin contracts
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $980.10 mln | $973.27 mln (7 Analysts) |
Q4 Adjusted EPS | Miss | $1.15 | $1.18 (7 Analysts) |
Q4 Adjusted Net Income | Miss | $49.20 mln | $50.71 mln (7 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for ASGN Inc is $54.50, about 7.3% above its February 3 closing price of $50.77
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw2kjCfWa
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)