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What: Shares of staffing firm On Assignment
So what: Revenue nearly doubled from a year ago to $283 million, and net income was $8.5 million, or $0.28 per share after adjusting for acquisition costs. Analysts only expected earnings per share of $0.23, so the market is cheering the better-than-expected results.
Now what: Excluding the Apex Systems acquisition, revenues were still up 28%, so the core business is still very healthy. Management is also expecting conditions to improve in the third quarter, with revenue guidance of $382 million to $388 million and expected earnings per share of $0.28 to $0.31. With these growth numbers, I think the company's 13 forward P/E ratio is a good value for investors and shares can move higher from here.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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