ASGN Incorporated (NYSE:ASGN) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
Last week saw the newest full-year earnings release from ASGN Incorporated (NYSE:ASGN), an important milestone in the company's journey to build a stronger business. Results were roughly in line with estimates, with revenues of US$4.5b and statutory earnings per share of US$4.50. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ASGN after the latest results.
Check out our latest analysis for ASGN
Following the recent earnings report, the consensus from nine analysts covering ASGN is for revenues of US$4.34b in 2024. This implies a small 2.5% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 7.4% to US$4.30 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$4.38b and earnings per share (EPS) of US$4.48 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at US$94.51, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ASGN analyst has a price target of US$112 per share, while the most pessimistic values it at US$70.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.5% by the end of 2024. This indicates a significant reduction from annual growth of 6.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ASGN is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ASGN. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ASGN's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for ASGN going out to 2026, and you can see them free on our platform here..
Before you take the next step you should know about the 1 warning sign for ASGN that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
