Core Viewpoint - ASGN Inc is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $1.08 per share, reflecting a year-over-year decrease of 20.6% [3]. - Revenues are projected to be $991.41 million, down 4.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.84% lower in the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +1.24% suggests recent bullish sentiment among analysts, despite the stock holding a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Earnings Surprise History - In the last reported quarter, ASGN Inc was expected to post earnings of $0.95 per share but delivered $0.92, resulting in a surprise of -3.16% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While ASGN Inc does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

Financial Performance & Metrics - ASGN's TTM revenue is $4 billion[7], with free cash flow of $308.8 million[7] and adjusted EBITDA of $437.3 million[8] - Q1 2025 revenue was $968.3 million[34], a decrease compared to $1,049.0 million in Q1 2024[34], representing a -7.7% change[63] - Q1 2025 Adjusted EBITDA was $93.6 million[34] with a margin of 9.7%[34], compared to $108.3 million and 10.3% in Q1 2024[34] - The company estimates Q2 2025 revenues between $985.0 million and $1,015.0 million[36], representing a year-over-year revenue change of -4.8% to -1.9%[36] Segment Performance - Commercial segment revenue in Q1 2025 was $672.2 million[47], with consulting revenue contributing $290.1 million[47] - Federal segment revenue in Q1 2025 was $296.1 million[53], a decrease of -6.7% year-over-year[53] - The federal segment's funded backlog as of March 31, 2025, was $501.2 million[56], with an unfunded backlog of $2,664.4 million[56] Strategic Initiatives - ASGN acquired TopBloc, with estimated revenues of $150 million for full year 2025 and adjusted EBITDA margins in the high teens[29] - The company has a $750 million share repurchase plan[27] - IT consulting accounted for 61% of revenues as of Q1 2025[39]

Summary of ASGN Conference Call Company Overview - ASGN operates in the IT services sector with approximately $4 billion in revenues, primarily in the US [3] - The company serves large enterprise accounts, with 70% of revenue from Fortune 500 clients across various industries, including financials, consumer, industrials, TMT, and business services [3] - About 30% of revenue comes from the federal government, mainly serving the Department of Defense, National Intelligence, and Department of Homeland Security [3] Core Business Insights - ASGN has a diverse account portfolio, which provides stability and resilience in varying economic conditions [4] - The company is transitioning from IT staffing to higher-value consulting services, which is expected to drive strategic growth [6] - ASGN's flexible cost structure and strong free cash flow allow for strategic acquisitions and investments [4][12] Financial Performance - The company has a gross margin structure influenced by business mix, with government segments typically having lower margins compared to commercial consulting [8] - ASGN achieved an EBITDA margin target of 12-12.5% within 18 months, driven by growth in commercial consulting [20] - Free cash flow conversion from EBITDA is between 60-65%, with a balanced capital allocation strategy focusing on organic growth, share repurchase, and M&A [11][12] Market Dynamics - Clients are cautious about discretionary spending due to macroeconomic uncertainties, impacting IT investment decisions [22][25] - There is a noted increase in business confidence post-election, leading to improved bookings in commercial consulting and federal spaces [24] - The demand for IT services is driven by the need for AI, data modernization, application development, and cybersecurity [36] Strategic Initiatives - ASGN's acquisition of TopLock enhances its capabilities within the Workday ecosystem, targeting medium enterprises [18][19] - The company is focusing on integrating AI and cloud services into its offerings while managing investments based on market conditions [30][31] - ASGN is positioned to leverage its technical expertise in AI and data to meet client needs, despite the current cautious environment [27][34] Government Segment Insights - The federal government accounts for about 30% of ASGN's revenue, with a significant portion from defense-related contracts [38] - Recent shifts in government spending focus on defense and technology, with ongoing discussions about improving efficiency and outcomes in federal contracts [39] - Strong bookings in the government sector indicate potential future revenue growth, despite slower conversion rates from bookings to revenue [43] Conclusion - ASGN is strategically positioned to capitalize on the evolving IT landscape, focusing on high-margin consulting services and leveraging its expertise in emerging technologies like AI and cloud computing [17][26] - The company remains vigilant in monitoring macroeconomic indicators that could influence client spending and investment in technology [44]

Leadership Transition - SmartBug Media announced a strategic leadership transition, promoting Adam Bleibtreu to CEO effective July 1, 2025, while founder Ryan Malone will remain as chairman of the board [1][4] - Bleibtreu has extensive executive experience and has been instrumental in overseeing SmartBug's strategic direction and growth initiatives [2][5] Executive Background - Adam Bleibtreu previously served as CMO at ASGN Incorporated, where he contributed to the company's revenue growth from $2.2 billion to over $4 billion through strategic acquisitions and organic growth [3] - His leadership experience spans various sectors, including technology, staffing, and digital marketing, positioning him well to lead SmartBug's mission [3] Company Vision and Strategy - Malone emphasized the importance of handing leadership to someone with the right skills and experience, highlighting Bleibtreu's client-centric approach and vision for the company [3] - Bleibtreu expressed excitement about leading SmartBug at a pivotal moment, focusing on the intersection of client needs, marketing technologies, and digital transformation [5] Company Recognition - SmartBug Media has been recognized as HubSpot's 2024 North American Partner of the Year and is a top-performing Elite Global Solutions Partner [5][7]

Financial Performance - Revenues for Q1 2025 were $968.3 million, a decrease of 7.7% compared to $1,049.0 million in Q1 2024[8] - Gross profit for Q1 2025 was $275.4 million, down from $296.2 million in Q1 2024, reflecting a gross margin of 28.5%[8] - Net income for Q1 2025 was $20.9 million, a decline of 45.0% from $38.1 million in Q1 2024, resulting in earnings per share of $0.48[8] - The company reported a comprehensive income of $21.7 million for Q1 2025, compared to $37.9 million in Q1 2024[8] - Basic earnings per share for the three months ended March 31, 2025, were $0.48, compared to $0.82 for the same period in 2024, reflecting a decrease of approximately 41.5%[25] - Operating income decreased to $46.6 million in Q1 2025, a decline of 34.2% from $70.9 million in Q1 2024[8] - The Company reported a segment operating income of $74.9 million for the three months ended March 31, 2025, compared to $91.8 million for the same period in 2024, a decrease of approximately 18.4%[27] Assets and Liabilities - Total assets increased to $3,698.4 million as of March 31, 2025, compared to $3,429.0 million at December 31, 2024[7] - Long-term debt rose to $1,282.6 million as of March 31, 2025, up from $1,033.5 million at the end of 2024[7] - Long-term debt as of March 31, 2025, totaled $1,282.6 million, an increase from $1,033.5 million as of December 31, 2024[18] - The Company has $550.0 million of unsecured senior notes due in 2028, bearing interest at 4.625% payable semiannually[20] Acquisition Details - The company completed the acquisition of TopBloc, LLC for $340.0 million, with 90% paid in cash and 10% in equity[14] - The preliminary fair value of identifiable intangible assets from the TopBloc acquisition is estimated at $78.9 million, with goodwill of $245.9 million[14] - Goodwill balance as of March 31, 2025, is $2,139.5 million, reflecting an increase from $1,893.1 million as of December 31, 2024, primarily due to the acquisition of TopBloc for $245.9 million[15] - Goodwill from the TopBloc acquisition is estimated at $245.9 million, with approximately $215.6 million deductible for income taxes[14] Cash Flow - Cash and cash equivalents decreased to $107.0 million at the end of Q1 2025, down from $205.2 million at the beginning of the year[11] - Net cash provided by operating activities was $16.8 million in Q1 2025, significantly lower than $73.3 million in Q1 2024[11] Segment Performance - The Commercial Segment generated revenues of $672.2 million for the three months ended March 31, 2025, while the Federal Government Segment contributed $296.1 million[27] - The Company’s Federal Government Segment revenues from the Department of Defense and Intelligence Agencies were $128.9 million for the three months ended March 31, 2025, down from $150.1 million in 2024[30] - The Federal Government Segment generated revenues of $296.1 million for the three months ended March 31, 2025, down from $317.5 million in the same period of 2024, a decrease of approximately 6.5%[30] - The Commercial Segment's consulting revenues increased to $290.1 million for the three months ended March 31, 2025, compared to $277.0 million in the same period of 2024, reflecting a growth of 4.5%[27] Compliance and Future Expenses - The Company is in compliance with its debt covenants, with a maximum ratio of senior secured debt to trailing-twelve-months consolidated EBITDA of 1.64 to 1 as of March 31, 2025[19] - Estimated future amortization expense for identifiable intangible assets totals $199.2 million, with the highest expense of $54.1 million expected in 2026[17]

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].