Kforce Inc (KFRC) Reports Q3 2023 Earnings: Revenue at $373.1 Million, EPS at $0.54
Kforce Inc (NASDAQ:KFRC) reported Q3 2023 revenue of $373.1 million, a decrease of 14.7% year-over-year.
The company's earnings per share (EPS) for the quarter was $0.54, a decrease of 50% year-over-year.
Adjusted for certain third quarter charges, the EPS stands at $0.90.
The company returned $24.9 million in capital to shareholders for Q3 2023.
On October 30, 2023, Kforce Inc (NASDAQ:KFRC), a solutions firm specializing in technology and professional staffing services, announced its financial results for the third quarter of 2023. The company reported a revenue of $373.1 million, a decrease of 14.7% compared to the same quarter in 2022. The earnings per share (EPS) for the quarter was $0.54, a decrease of 50% year-over-year. However, when adjusted for certain third quarter charges, the EPS stands at $0.90.
Company Performance and Financial Highlights
Despite a challenging macro environment, Kforce Inc (NASDAQ:KFRC) continues to focus on growing its business organically. The company's third quarter results were stronger than anticipated, with a notable improvement in consultant retention in the latter half of the quarter and an improving trend of new project starts in October.
Revenue for the quarter ended September 30, 2023, was $373.1 million, a decrease of 14.7% year-over-year. Technology revenue decreased 13.4% year-over-year. Gross profit margins of 27.7% decreased 130 basis points year-over-year. As reported, SG&A expenses as a percentage of revenue was 23.1%, which increased 160 basis points year-over-year. As adjusted, SG&A expenses as a percentage of revenue was 20.9%, which decreased 60 basis points year-over-year.
As reported, operating margins were 4.3% for the quarter, which decreased 290 basis points year-over-year. As adjusted, operating margins were 6.5%, a decrease of 70 basis points year-over-year. The company returned $24.9 million in capital to shareholders for the three months ended September 30, 2023.
Looking Forward
Despite the uncertainties in the macro environment, Kforce Inc (NASDAQ:KFRC) remains optimistic about its strategic position and prospects. The company expects its solid balance sheet and cash flows to continue providing great flexibility to return significant capital to shareholders. For the fourth quarter of 2023, the company estimates revenue of $359 million to $367 million and earnings per share of $0.74 to $0.82.
About Kforce Inc
Kforce Inc is a solutions firm specializing in technology and other professional staffing services. Each year, the company provides career opportunities for approximately 25,000 highly skilled professionals on a temporary, consulting, or direct-hire basis. These professionals work with approximately 2,500 clients, including a significant majority of the Fortune 500, helping them conquer challenges and meet their digital transformation goals.
Explore the complete 8-K earnings release (here) from Kforce Inc for further details.
This article first appeared on GuruFocus.
