Staffing firm Kforce Q3 revenue beats estimates on strong performance in tech segment

Kforce

03/11/2025 21:12

Overview

Kforce Q3 revenue of $332.6 mln beats analyst expectations

Diluted EPS for Q3 was $0.63, down 16% yr/yr

Company increases share buyback authorization to $100 mln

Outlook

Kforce expects fourth-quarter revenue between $326 mln and $334 mln

Company anticipates fourth-quarter EPS between $0.43 and $0.51

Kforce forecasts fourth-quarter gross profit margins of 27.1% to 27.3%

Result Drivers

TECHNOLOGY SEGMENT - Consultants on assignment in Technology segment improved throughout Q3, contributing to better-than-expected results

FA BUSINESS GROWTH - FA business stabilized and grew meaningfully sequentially, contributing to Q3 performance

SEQUENTIAL BILLING DAY GROWTH - Co expects sequential billing day growth in Technology and FA businesses in Q4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$332.64 mln
$328.32 mln (5 Analysts)
Q3 EPS
$0.63
Q3 Net Income
$11.06 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for Kforce Inc is $40.50, about 37.5% above its October 31 closing price of $25.30

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw3dgRqla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)