Financial Data and Key Metrics Changes - Revenues totaled $968.3 million, a decrease of 7.7% year over year, in line with guidance expectations [31] - Adjusted EBITDA margin was 9.7% for the quarter [8][34] - Net income for the quarter was $20.9 million [34] - Free cash flow totaled $6.6 million, lower than typical due to an increase in Days Sales Outstanding (DSO) [36] Business Line Data and Key Metrics Changes - Revenues from the commercial segment were $672.2 million, a decrease of 8.1% year over year [31] - Assignment revenue totaled $382.1 million, a decrease of 16% year over year [31] - Commercial consulting revenues, the highest margin stream, totaled $290.1 million, an increase of 4.7% year over year [31] - Federal government segment revenues were $296.1 million, a decrease of 6.7% year over year [31] Market Data and Key Metrics Changes - Consulting bookings for the commercial segment were $336.9 million, improving 4.2% compared to the first quarter of 2024 [13] - Book-to-bill ratio was 1.2 times for both commercial and federal segments [12][24] - Contract backlog for the federal government segment was over $3.1 billion, with a coverage ratio of 2.6 times trailing twelve-month revenues [24] Company Strategy and Development Direction - The company aims to nurture long-standing client relationships and expand technology partnerships, focusing on IT modernization and efficiency [11] - The acquisition of TopBloc is expected to enhance solution capabilities and drive future growth [10][42] - The company is committed to providing high-value IT services while maintaining a flexible cost structure [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while macroeconomic uncertainty persists, there is confidence in the company's unique business model and its ability to adapt [41] - Clients remain cautious about increasing IT spending, but demand for AI and data solutions continues to grow [9][15] - The company expects to see improvements in DSO and is cautiously optimistic about future revenue guidance [36][38] Other Important Information - SG&A expenses for the quarter were $214.5 million, including one-time costs related to acquisition and software write-offs [33] - The company repurchased approximately 0.6 million shares at an average price of $78.44, with $478.6 million remaining under the share repurchase authorization [35] Q&A Session Summary Question: Can you characterize bookings across different businesses? - Management indicated a mix of renewal and new work, with renewal being a larger percentage [52] Question: What is the impact of DOGE on the federal business? - The impact has been more on the civilian side rather than defense, with some interruptions in traditional management consulting work [55] Question: How have margins been maintained? - Margins have improved due to a higher mix of consulting work and the addition of capabilities like TopBloc [66] Question: What is the visibility on client projects? - Clients are in a cautious wait-and-see mode regarding new projects, influenced by macroeconomic factors [73] Question: How much did TopBloc contribute to Q1 results? - TopBloc's contribution was immaterial as it was only included for a few weeks in March [78] Question: What is the velocity of adjudications in relation to DOGE? - The velocity of adjudications is less visible, with agencies ensuring alignment on contract decisions [130]

分组1 - ASGN Inc reported quarterly earnings of $0.92 per share, missing the Zacks Consensus Estimate of $0.95 per share, and down from $1.16 per share a year ago, representing an earnings surprise of -3.16% [1] - The company posted revenues of $968.3 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.24%, but down from $1.05 billion year-over-year [2] - ASGN Inc shares have declined approximately 30.3% since the beginning of the year, compared to a decline of -10.1% for the S&P 500 [3] 分组2 - The current consensus EPS estimate for the coming quarter is $1.25 on revenues of $1.01 billion, and for the current fiscal year, it is $4.88 on revenues of $4.01 billion [7] - The Zacks Industry Rank for Computers - IT Services is currently in the bottom 42% of over 250 Zacks industries, indicating potential underperformance compared to the top 50% of ranked industries [8]

Financial Performance - Consolidated - Revenues for Q1 2025 were $9683 million, a decrease of 77% compared to $10490 million in Q1 2024[6] - Net Income decreased from $381 million in Q1 2024 to $209 million in Q1 2025[6] - Adjusted EBITDA decreased from $1083 million in Q1 2024 to $936 million in Q1 2025[6] - Diluted Earnings per Share decreased from $081 in Q1 2024 to $048 in Q1 2025[6] Financial Performance - Commercial Segment - Commercial segment revenues decreased from $7315 million in Q1 2024 to $6722 million in Q1 2025[13] - Assignment revenues decreased from $4545 million in Q1 2024 to $3821 million in Q1 2025[13] - Consulting revenues increased from $2770 million in Q1 2024 to $2901 million in Q1 2025[13] - Adjusted EBITDA decreased from $838 million in Q1 2024 to $717 million in Q1 2025[16] Financial Performance - Federal Government Segment - Federal Government segment revenues decreased by 67% from $3175 million in Q1 2024 to $2961 million in Q1 2025[19] - Adjusted EBITDA decreased from $321 million in Q1 2024 to $284 million in Q1 2025[21] Balance Sheet & Cash Flow - Cash & Cash Equivalents decreased from $2052 million on 12/31/24 to $1070 million on 3/31/25[8] - Free Cash Flow decreased significantly from $625 million in Q1 2024 to $66 million in Q1 2025, a decrease of 894%[8]

Financial Performance - Total revenues for Q1 2025 were $968.3 million, a decrease from $1.05 billion in Q1 2024[5] - Net income for Q1 2025 was $20.9 million, down from $38.1 million in the same period last year[9] - Adjusted EBITDA for Q1 2025 was $93.6 million, representing 9.7% of revenues, compared to $108.3 million or 10.3% in Q1 2024[10] - SG&A expenses increased to $214.5 million from $210.2 million in Q1 2024, including a $4.4 million write-off related to software enhancements[8] - Cash provided by operating activities for Q1 2025 was $16.8 million, a decrease of 77% from $73.3 million in Q4 2024[24] - Free Cash Flow for Q1 2025 was $6.6 million, down 89% from $62.5 million in Q4 2024[24] - Net income for Q1 2025 was $20.9 million, a decline of 45% compared to $38.1 million in Q4 2024[26] - Adjusted EBITDA for Q1 2025 was $93.6 million, down 13.5% from $108.3 million in Q4 2024[26] - The company expects net income for Q2 2025 to be between $29.3 million and $34.3 million[28] - Adjusted Net Income for Q2 2025 is projected to range from $45.5 million to $50.5 million[28] Revenue Segments - IT consulting revenues accounted for approximately 61% of total revenues, up from 56.7% in Q1 2024[6] - The Commercial Segment generated revenues of $672.2 million, down from $731.5 million in Q1 2024, while the Federal Government Segment revenues were $296.1 million, down from $317.5 million[5] - New bookings in the Commercial Segment for the trailing twelve months were $1.3 billion, with a book-to-bill ratio of 1.1[3] - New contract awards in the Federal Government Segment for the trailing twelve months were $1.5 billion, with a book-to-bill ratio of 1.2[3] - The company reported a book-to-bill ratio for the Commercial consulting business, indicating strong demand for new contracts[33] - The company anticipates continued growth in the Federal Government Segment with new contract awards expected to contribute to future revenues[34] Acquisitions and Investments - The company completed the acquisition of TopBloc for $340 million, financed with 90% cash and 10% equity[11] Future Outlook - The company expects Q2 2025 revenues to range between $985 million and $1.015 billion, reflecting current market conditions[12] - Total assets increased to $3,698.4 million in Q1 2025, up from $3,429.0 million in Q4 2024[24] - Long-term debt rose to $1,282.6 million in Q1 2025, an increase of 24% from $1,033.5 million in Q4 2024[24]

Core Viewpoint - ASGN Inc is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of surpassing expectations in previous quarters [1][6]. Earnings Performance - ASGN Inc has consistently exceeded earnings estimates, averaging a 5% beat over the last two quarters [2]. - In the last reported quarter, ASGN Inc achieved earnings of $1.28 per share, surpassing the Zacks Consensus Estimate of $1.23 per share by 4.07% [3]. - In the previous quarter, the company reported earnings of $1.43 per share against an expected $1.35 per share, resulting in a surprise of 5.93% [3]. Earnings Estimates and Predictions - There has been a favorable shift in earnings estimates for ASGN Inc, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests that ASGN Inc has a nearly 70% chance of delivering a positive surprise [7]. - Currently, ASGN Inc has an Earnings ESP of +0.35%, reflecting increased analyst optimism regarding its near-term earnings potential [9].

Financial Performance - Revenues for 2024 were $4.1 billion, a decrease of 7.9% year-over-year, with the Commercial Segment contributing $2.87 billion (down 9.6%) and the Federal Government Segment contributing $1.23 billion (down 3.5%) [128] - Gross profit declined 7.5% to $1.18 billion, with a gross margin of 28.9%, reflecting a higher mix of Commercial consulting revenues [134] - Net income for 2024 was $175.2 million, down from $219.3 million in 2023 [139] Expenses - Selling, general and administrative expenses were $821.2 million, representing 20.0% of revenues, down from 19.0% in 2023 [135] Bookings and Contracts - Commercial consulting bookings were $1.28 billion, down from $1.35 billion in 2023, with a book-to-bill ratio of 1.1 to 1 [142] - New contract awards in the Federal Government Segment increased to $1.34 billion from $1.02 billion in 2023, with a book-to-bill ratio of 1.1 to 1 [144] - Funded contract backlog was $529.0 million, while the total contract backlog was $3.12 billion, reflecting a coverage ratio of 2.5 to 1 [144] Cash Flow - Cash and cash equivalents at year-end were $205.2 million, with working capital of $550.6 million [145] - Net cash provided by operating activities was $400.0 million, down from $456.9 million in 2023 [146] - Net cash used in investing activities was $35.3 million, primarily related to capital expenditures [147] - Net cash used in financing activities in 2024 was $333.2 million, primarily for stock repurchases of $327.2 million and principal payments of $5.0 million on term loan B [148] - In 2023, net cash used in financing activities was $310.9 million, including $273.1 million for stock repurchases and $31.5 million in net repayments under the revolving credit facility [148] Debt and Obligations - Long-term debt obligations total $1,300.7 million, with $62.0 million due in less than 1 year and $627.7 million due in 3-5 years [150] - Total contractual cash obligations amount to $1,418.3 million, including operating leases and purchase obligations [150] - The company had no off-balance sheet arrangements as of December 31, 2024 [153] Reserves and Liabilities - Workers' compensation loss reserves were $2.8 million in 2024, down from $3.0 million in 2023, net of anticipated recoveries of $10.5 million [151] - Deferred compensation plan liability increased to $17.8 million in 2024 from $16.6 million in 2023 [152] Interest Rate Sensitivity - A hypothetical 100 basis-point change in interest rates on variable-rate debt would result in an interest expense fluctuation of approximately $4.9 million based on $493.8 million of debt outstanding [155] Credit Facilities - The August 2023 amendments to the senior secured credit facility generated net proceeds of $8.0 million, offset by related amendment costs [149] - The company has undrawn stand-by letters of credit outstanding of $3.7 million as of December 31, 2024 [151]

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $985 million, a decrease of 8.3% year-over-year, but essentially flat compared to Q3 2024 [36] - Gross margin for Q4 2024 was 29%, an increase of 60 basis points from the previous year [39] - Adjusted EBITDA was $109.7 million, with an adjusted EBITDA margin of 11.1% [40] Business Line Data and Key Metrics Changes - Revenue from the Commercial Segment was $692.7 million, a decrease of 7.5% year-over-year, while consulting revenues increased by 6% to $284.7 million [37][38] - Federal Government segment revenues were $292.3 million, a decrease of 10.2% year-over-year, primarily due to lower-than-expected software license revenues [38] Market Data and Key Metrics Changes - The Federal Government segment maintained a robust win rate of approximately 90% for re-competed contracts, with a contract backlog exceeding $3.1 billion [27][28] - The company noted improvements in the Financial Services vertical, particularly among Big Banking clients, which are significant IT spenders [14][55] Company Strategy and Development Direction - The company is focused on advancing towards higher-end, high-value IT consulting solutions, with IT consulting revenues comprising approximately 58% of total revenues [6] - The acquisition of TopBloc is aimed at enhancing organic consulting growth and capitalizing on the growing demand for ERP implementations [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about improving business confidence, although a turnaround in IT spending has yet to materialize [8] - The company anticipates that new administration spending initiatives could lead to increased demand for its core solutions in AI, cybersecurity, and digital modernization [29] Other Important Information - The company plans to allocate free cash flow towards paying down debt post-acquisition of TopBloc, which is expected to close in late Q1 2025 [45] - Free cash flow for Q4 was $88.9 million, with a conversion rate of approximately 81% of adjusted EBITDA [41] Q&A Session Summary Question: Can you provide more color on Federal Government conversations regarding the new administration? - Management indicated that clients are still trying to understand the impact of the new administration, but there is a strong need for services in AI, cybersecurity, and IT modernization [60][61] Question: Have you seen any slowdown in awarding contracts or payments? - Management noted that while there are mixed signals regarding new awards, they have not seen a slowdown in payments [64][66] Question: What are your thoughts on the TopBloc acquisition and its strategic importance? - The acquisition is seen as accretive to growth and margins, with significant opportunities in the Workday ecosystem [70][78] Question: Are there signs of improving activity in client budgets? - Management observed encouraging signs in certain sectors, particularly financial services, indicating a potential uptick in IT spending [79][83] Question: Can you elaborate on the performance of the Financial Services vertical? - The Financial Services vertical has seen a slight recovery, with current revenue mix in the high teens, compared to 20-25% historically [88][91] Question: How did Creative Circle perform in the quarter? - Creative Circle and CyberCoders, which make up about 9% of revenue, experienced a decline greater than the IT offering, consistent with previous trends [139]

Group 1 - ASGN Inc reported quarterly earnings of $1.28 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, but down from $1.45 per share a year ago, representing an earnings surprise of 4.07% [1] - The company posted revenues of $985 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.61%, and down from $1.07 billion year-over-year [2] - ASGN Inc shares have increased approximately 4.4% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] Group 2 - The earnings outlook for ASGN Inc is uncertain, with current consensus EPS estimates at $1.14 on $1.01 billion in revenues for the coming quarter and $5.50 on $4.17 billion in revenues for the current fiscal year [7] - The estimate revisions trend for ASGN Inc is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Computers - IT Services industry, to which ASGN Inc belongs, is currently in the top 18% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Revenues for Q4 2024 were $985.0 million, down from $1.07 billion in Q4 2023, with IT consulting revenues at $577.0 million, representing 58.6% of total revenues[6][7] - Net income for Q4 2024 was $42.4 million ($0.95 per diluted share), compared to $50.3 million ($1.06 per diluted share) in Q4 2023[9][10] - Adjusted EBITDA for Q4 2024 was $109.7 million, or 11.1% of revenues, down from $121.0 million (11.3% of revenues) in Q4 2023[10] - Revenues for the three months ended December 31, 2024, were $985.0 million, a decrease of 8.3% from $1,074.1 million in the same period of 2023[21] - Gross profit for the same period was $286.0 million, down 6.2% from $304.9 million year-over-year[21] - Net income for the three months ended December 31, 2024, was $42.4 million, a decline of 15.5% compared to $50.3 million in the prior year[21] - Basic earnings per share decreased to $0.96 from $1.07, reflecting a 10.3% drop year-over-year[21] - Cash provided by operating activities was $100.2 million, down from $116.4 million in the previous quarter[23] - Free cash flow for the three months ended December 31, 2024, was $88.9 million, compared to $109.2 million in the same period of 2023[23] - Total assets decreased to $3,429.0 million from $3,544.6 million year-over-year[23] - Long-term debt remained relatively stable at $1,033.5 million compared to $1,036.6 million in the previous year[23] Future Projections - For Q1 2025, the company estimates revenues between $950.0 million and $970.0 million, with an expected net income of $27.8 million to $30.7 million[12][13] - The company expects net income for the first quarter of 2025 to be between $27.8 million and $30.7 million[27] - Adjusted net income for the first quarter of 2025 is projected to be between $40.2 million and $43.1 million, with diluted earnings per share expected to range from $0.91 to $0.97[27] Shareholder Actions - The company repurchased 0.5 million shares for $43.9 million at an average price of $90.45 per share during Q4 2024[11] Business Growth and Strategy - The commercial consulting revenues grew by 6% year-over-year, with a book-to-bill ratio of 1.1 in both the commercial and federal government segments[3][4] - The company announced a definitive agreement to acquire TopBloc, LLC for $340 million in cash and equity, enhancing its ERP capabilities[4] - The book-to-bill ratio for the Commercial consulting business indicates the ratio of new contract bookings to revenues, reflecting business growth[33] - For the Federal Government Segment, new contract awards represent estimated future revenues from contracts awarded, with a corresponding book-to-bill ratio[34] Financial Metrics and Measures - Cash and cash equivalents at the end of Q4 2024 were $205.2 million, with full availability under a $500.0 million Senior Secured Revolving Credit Facility[14] - The company utilizes non-GAAP financial measures such as EBITDA, Adjusted EBITDA, and Free Cash Flow to evaluate its financial performance, providing a clearer view of core business operations[29][30][32] - Adjusted Net Income is calculated to focus on ongoing core business performance by excluding non-operating and certain non-cash expenses, along with adjustments for amortization of intangible assets[31] - Revenues calculated on a Same Billable Days basis provide a more accurate year-over-year comparison by adjusting for differences in billable days[35] Leadership Changes - The company is enhancing its leadership team with the appointment of a new President, Shiv Iyer, effective March 1, 2025[4] Gross Margin - Gross margin for Q4 2024 was 29.0%, an increase of 60 basis points from Q4 2023, with the commercial segment gross margin at 32.6%[8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for ASGN Inc when it reports results for the quarter ended December 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ASGN Inc is expected to report quarterly earnings of $1.23 per share, reflecting a year-over-year decrease of 15.2%, and revenues are projected to be $1 billion, down 6.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.87% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for ASGN Inc is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.90% [10][11]. - Despite the positive Earnings ESP, ASGN Inc holds a Zacks Rank of 4, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, ASGN Inc exceeded the expected earnings of $1.35 per share, achieving actual earnings of $1.43, which was a surprise of +5.93% [12]. - Over the past four quarters, ASGN Inc has beaten consensus EPS estimates three times [13]. Industry Comparison - DXC Technology, another player in the IT Services industry, is expected to report earnings of $0.77 per share, indicating a year-over-year decline of 11.5%, with revenues projected at $3.25 billion, down 4.3% [17]. - DXC Technology's consensus EPS estimate has remained unchanged, but a lower Most Accurate Estimate results in an Earnings ESP of -1.66%, making it difficult to predict an earnings beat [18].