Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing firm On Assignment (NYSE: ASGN ) jumped 13% today after releasing earnings.
So what: Revenues jumped 15.4% in the second quarter, to $417.9 million, and income from continuing operations was $17.4 million, or $0.32 per share. That beat estimates by $0.04, and the company expects to grow revenue to between $429 million and $433 million next quarter.
Now what: The IT business remained strong with 18.4% growth over a year ago, as companies shifted spending. The acquisition of Apex Systems also appears to be paying off, because it's driving the IT business and contributing to growth. With the employment market improving, and companies still concerned about adding full-time employees, the company should continue to grow, although I think a forward P/E ratio of 24 is too expensive given the growth rate.
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