The 10-second takeaway
For the quarter ended March 31 (Q1), Kforce missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins expanded, net margins shrank.
Kforce logged revenue of $265.6 million. The seven analysts polled by S&P Capital IQ expected sales of $272.3 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The seven earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. GAAP EPS of $0.09 for Q1 were 25% lower than the prior-year quarter's $0.12 per share. (The prior-year quarter included $0.63 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.4%, 130 basis points better than the prior-year quarter. Operating margin was 2.0%, much better than the prior-year quarter. Net margin was 1.2%, 30 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $282.3 million. On the bottom line, the average EPS estimate is $0.20.
Next year's average estimate for revenue is $1.13 billion. The average EPS estimate is $0.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 88 members out of 101 rating the stock outperform, and 13 members rating it underperform. Among 28 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Kforce a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kforce is outperform, with an average price target of $16.71.
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