October 27, 2022
Third quarter earnings at ASGN Inc. (NYSE: ASGN ) is up 11.6% year over year. The increase was 8.4%, excluding contributions from acquisitions. Gross margin also improved.
“As evidenced by our results, demand for ASGN’s IT services and solutions remained high in the third quarter,” said CEO Ted Hanson. “Recorded revenues of $1.2 billion were above the midpoint of our guidance range, improving 11.6% year over year. Adjusted EBITDA of $148.7 million, also exceeded the midpoint of guidance, improving 8.9% year-over-year.
Growth in the quarter was largely driven by ASGN’s commercial segment — specifically the commercial consulting business, where new bookings increased 36.9% year-over-year.
The Richmond, Virginia-based company acquired Iron Vine Security, a provider of cybersecurity programs for federal customers in the quarter. ASGN also acquired GlideFast Consulting, a ServiceNow partner and IT consulting, implementation and development company that became part of ASGN’s commercial consulting business.
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Guidance
ASGN forecasts fourth-quarter revenue will rise between $1.12 billion and $1.14 billion, a year-over-year increase of between 6.6% and 8.5%.
Share price and market cap
Shares in ASGN were down 6.39% at $87.60 as of 12:25 pm Eastern time; they are 11.94% above their 52-week high, according to FT.com. The company has a market cap of $4.79 billion.