IT services provider ASGN (NYSE: ASGN) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.
ASGN beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $1.01 billion, down 1.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a slight miss of analysts’ EPS guidance for next quarter estimates.
Is ASGN a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting ASGN’s revenue to decline 1.1% year on year to $973.9 million, improving from the 8.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.18 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ASGN has missed Wall Street’s revenue estimates three times over the last two years.
Looking at ASGN’s peers in the it services & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. IBM delivered year-on-year revenue growth of 12.1%, beating analysts’ expectations by 2.5%, and DXC reported flat revenue, in line with consensus estimates. IBM traded up 5.1% following the results while DXC’s stock price was unchanged.
Read our full analysis of IBM’s results here and DXC’s results here.
Investors in the it services & other tech segment have had steady hands going into earnings, with share prices up 1.6% on average over the last month. ASGN is up 10.3% during the same time and is heading into earnings with an average analyst price target of $52.83 (compared to the current share price of $52.16).
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