ASGN Inc (ASGN) Reports Q3 2023 Earnings: Revenues Meet and Adjusted EBITDA Margin Exceeds Guidance
ASGN Inc (NYSE:ASGN) reports Q3 2023 revenues of $1.12 billion, in line with the company's guidance.
The company's net income for the quarter was $59.4 million.
Adjusted EBITDA, a non-GAAP measure, was $137.5 million, exceeding the company's guidance.
ASGN Inc (NYSE:ASGN) repurchased 1.1 million shares of its common stock for $91.3 million.
ASGN Inc (NYSE:ASGN), a leading provider of IT services and solutions, announced its financial results for the quarter ended September 30, 2023, on October 25, 2023. The company reported revenues of $1.12 billion, net income of $59.4 million, and adjusted EBITDA of $137.5 million, which is 12.3 percent of revenues. The company also reported operating cash flows of $147.5 million and free cash flow of $137.7 million.
Financial Performance
ASGN Inc (NYSE:ASGN) reported revenues of $1.12 billion for Q3 2023, a decrease of 6.8 percent compared to Q3 2022. The company's net income for the quarter was $59.4 million, compared to $73.2 million in Q3 2022. The company's adjusted EBITDA, a non-GAAP measure, was $137.5 million, or 12.3 percent of revenues, compared to $148.7 million or 12.4 percent of revenues in Q3 2022.
Company's Commentary
The resiliency of ASGNs business model continued to play out as designed in the third quarter of 2023, said ASGN Chief Executive Officer, Ted Hanson. Revenues of $1.12 billion surpassed the midpoint of our guidance range. IT consulting revenues across our commercial and government businesses reached approximately 55 percent of consolidated revenues, ahead of our 2024 goal. Adjusted EBITDA margin of 12.3 percent surpassed the top-end of our guidance range for the quarter, benefiting from the variable nature of our cost structure.
Capital Resources and Capital Allocation
As of September 30, 2023, the company had cash and cash equivalents of $145.6 million and full availability under its $500.0 million Senior Secured Revolving Credit Facility due in 2028. The company also had Senior Secured Debt of $500.0 million due in 2030 and Senior unsecured notes totaling $550.0 million at 4.625 percent due in 2028. During the quarter, the company repurchased 1.1 million shares of its common stock for $91.3 million.
Outlook
The company's financial estimates for the fourth quarter of 2023 are based on current operating trends and assume no significant deterioration in the markets ASGN serves. The company expects revenues to be between $1,042.5 million and $1,062.5 million, and net income to be between $46.2 million and $49.1 million.
Explore the complete 8-K earnings release (here) from ASGN Inc for further details.
This article first appeared on GuruFocus.
