ASGN Incorporated (NYSE:ASGN) Earnings Report Highlights

• ASGN's earnings per share (EPS) of $1.03 missed the estimated $1.35, while revenue exceeded expectations at $1.031 billion.
• The company reported a net income of $47.5 million and an adjusted EBITDA of $116.9 million, indicating strong financial health.
• ASGN's IT consulting segment was a major revenue contributor, and the company showed a stable market demand in both commercial and federal government segments.

ASGN Incorporated (NYSE:ASGN) is a key player in the IT services and solutions industry, catering to both commercial and government sectors. The company recently reported its third-quarter 2024 earnings, revealing a mixed financial performance. While ASGN's earnings per share (EPS) of $1.03 fell short of the estimated $1.35, the company managed to surpass revenue expectations with $1.031 billion against the anticipated $1.006 billion.

During the earnings call on October 23, 2024, attended by notable analysts, ASGN's leadership, including CEO Ted Hanson and CFO Marie Perry, provided insights into the company's financial health. The call highlighted ASGN's net income of $47.5 million and an adjusted EBITDA of $116.9 million, which represents 11.3% of the total revenues. The company also reported strong operating cash flows of $135.8 million and a free cash flow of $127.9 million.

ASGN's IT consulting segment played a significant role, contributing 57.9% to the total revenues. In the commercial segment, the company achieved new bookings of $1.2 billion over the trailing twelve months, with a book-to-bill ratio of 1.1 to 1. The federal government segment secured $1.1 billion in new contract awards, with a book-to-bill ratio of 0.9 to 1, indicating a stable market demand.

Financial metrics provide further insights into ASGN's market position. The company's price-to-earnings (P/E) ratio is approximately 23.07, while the price-to-sales ratio is about 0.995. The enterprise value to sales ratio stands at 1.21, and the enterprise value to operating cash flow ratio is around 11.84. These figures reflect ASGN's valuation relative to its sales and cash flow. Additionally, the company's debt-to-equity ratio of 0.58 suggests a moderate level of debt compared to its equity.