Examining the Future: ASGN's Earnings Outlook

ASGN (NYSE:ASGN) is set to give its latest quarterly earnings report on Wednesday, 2025-04-23. Here's what investors need to know before the announcement.

Analysts estimate that ASGN will report an earnings per share (EPS) of $0.95.

The market awaits ASGN's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings History Snapshot

The company's EPS beat by $0.07 in the last quarter, leading to a 5.86% drop in the share price on the following day.

Here's a look at ASGN's past performance and the resulting price change:

ASGN Share Price Analysis

Shares of ASGN were trading at $56.98 as of April 21. Over the last 52-week period, shares are down 43.2%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Insights Shared by Analysts on ASGN

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on ASGN.

The consensus rating for ASGN is Buy, based on 1 analyst ratings. With an average one-year price target of $75.0, there's a potential 31.63% upside.

Comparing Ratings with Competitors

The below comparison of the analyst ratings and average 1-year price targets of DXC Technology and Grid Dynamics Holdings, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for DXC Technology, with an average 1-year price target of $22.0, suggesting a potential 61.39% downside.
• Analysts currently favor an Buy trajectory for Grid Dynamics Holdings, with an average 1-year price target of $30.0, suggesting a potential 47.35% downside.

Key Findings: Peer Analysis Summary

In the peer analysis summary, key metrics for DXC Technology and Grid Dynamics Holdings are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

ASGN ranks highest in Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into ASGN's Background

ASGN Inc is a provider of information technology (IT) services and professional solutions, including technology, creative, and digital, across the commercial and government sectors. It operates through two segments, Commercial and Federal Government. The Commercial Segment, which generates the majority of the revenue, provides consulting, creative digital marketing, and permanent placement services to Fortune 1000 clients and mid-market companies. The Federal Government Segment provides mission-critical solutions to the Department of Defense, intelligence agencies, and civilian agencies.

Financial Insights: ASGN

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Challenges: ASGN's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -8.3%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: ASGN's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.3%, the company may face hurdles in effective cost management.

Return on Equity (ROE): ASGN's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 2.39%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): ASGN's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.24%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.62, ASGN adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for ASGN visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.