ASGN reports Q1 EPS $1.38, consensus $1.42

Last night, the company also reported Q1 revenue of $1.13B, consensus $1.15B. CEO Ted Hanson stated: "Continuing to execute solidly in the core strategic areas of our business, ASGN‘s revenues for the first quarter improved 3.5 percent as compared to the prior-year period. Our IT consulting revenues, including both commercial and federal government work, surpassed the 50 percent mark, totaling 50.4 percent for the quarter, a significant increase from 42.4 percent of revenues in the first quarter of 2022. The strong growth of our IT consulting services and solutions revenues reconfirms ASGN’s decision to double down on high-end, higher value consulting work for Fortune 1000 and federal government clients. That said, the areas of our business that are more discretionary and cyclical in nature, namely assignment revenue, declined. We programmed for some of this in our guidance; however, the decline towards the end of the quarter was greater than we had initially anticipated in our first quarter guidance, negatively impacting our revenues and margins. Importantly, the long-term EBITDA margin profile of our business has not changed and is expected to further improve over time based on our move toward a more consultative model. With a number of key business stabilizers in place to protect us on the downside, ASGN remains committed to providing leading IT services and solutions to the commercial and government end markets. While macro conditions may continue to be challenging, the long-term growth trajectory of our business has never been stronger."