A Peek at Kforce's Future Earnings

Kforce KFRC is gearing up to announce its quarterly earnings on Monday, 2024-10-28. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Kforce will report an earnings per share (EPS) of $0.69.

Anticipation surrounds Kforce'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.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $0.02, leading to a 3.88% increase in the share price the following trading session.

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

Tracking Kforce's Stock Performance

Shares of Kforce were trading at $55.22 as of October 24. Over the last 52-week period, shares are down 1.67%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Insights Shared by Analysts on Kforce

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Kforce.

The consensus rating for Kforce is Buy, derived from 1 analyst ratings. An average one-year price target of $71.0 implies a potential 28.58% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Barrett Bus Servs, Fiverr Intl and Heidrick & Struggles Intl, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for Barrett Bus Servs, with an average 1-year price target of $42.0, indicating a potential 23.94% downside.
• The prevailing sentiment among analysts is an Buy trajectory for Fiverr Intl, with an average 1-year price target of $35.75, implying a potential 35.26% downside.
• The consensus among analysts is an Outperform trajectory for Heidrick & Struggles Intl, with an average 1-year price target of $44.0, indicating a potential 20.32% downside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Barrett Bus Servs, Fiverr Intl and Heidrick & Struggles Intl are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Kforce ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. Kforce is at the top for Return on Equity.

Delving into Kforce's Background

Kforce Inc provides professional and technical specialty staffing services and solutions. The company operates two business segments: 1) technology segment where the company provides talent solutions with candidates skilled in areas including systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. 2) FA segment where the company offers consultants in traditional finance and accounting roles such as finance, planning and analysis; business intelligence analysis; general accounting; transactional accounting business and cost analysis; and taxation and treasury. The majority of revenue is earned through the technology segment.

Breaking Down Kforce's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Kforce's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -8.45%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Kforce's net margin is impressive, surpassing industry averages. With a net margin of 3.97%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Kforce's ROE excels beyond industry benchmarks, reaching 8.55%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Kforce's ROA excels beyond industry benchmarks, reaching 3.88%. This signifies efficient management of assets and strong financial health.

Debt Management: Kforce's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.31.

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

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