Earnings Preview: ASGN

ASGN ASGN is gearing up to announce its quarterly earnings on Wednesday, 2024-10-23. Here's a quick overview of what investors should know before the release.

Analysts are estimating that ASGN will report an earnings per share (EPS) of $1.36.

Anticipation surrounds ASGN's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.03, leading to a 8.9% drop in the share price on the subsequent day.

Here's a look at ASGN's past performance and the resulting price change:

Stock Performance

Shares of ASGN were trading at $93.12 as of October 21. Over the last 52-week period, shares are up 17.54%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on ASGN

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on ASGN.

The consensus rating for ASGN is Buy, based on 2 analyst ratings. With an average one-year price target of $101.5, there's a potential 9.0% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of and DXC Technology, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• As per analysts' assessments, DXC Technology is favoring an Neutral trajectory, with an average 1-year price target of $21.33, suggesting a potential 77.09% downside.

Peer Analysis Summary

The peer analysis summary presents essential metrics for and DXC Technology, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

ASGN has higher revenue growth compared to its peer. ASGN also has higher gross profit margin. However, ASGN has lower return on equity. Overall, ASGN is performing better than its peer in terms of revenue growth and gross profit, but lags behind in return on equity.

About ASGN

ASGN Inc is a provider of information technology (IT) services and professional solutions, including technology, creative, and digital, across the commercial and government sectors. It operates through two segments, Commercial and Federal Government. The Commercial Segment, which generates the majority of the revenue, provides consulting, creative digital marketing, and permanent placement services to Fortune 1000 clients and mid-market companies. The Federal Government Segment provides mission-critical solutions to the Department of Defense, intelligence agencies, and civilian agencies.

Financial Insights: ASGN

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: ASGN's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -8.51%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: ASGN's net margin excels beyond industry benchmarks, reaching 4.56%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.57%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): ASGN's ROA stands out, surpassing industry averages. With an impressive ROA of 1.36%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: ASGN's debt-to-equity ratio is below the industry average. With a ratio of 0.61, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for ASGN visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.