The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Kforce met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded significantly.
Margins grew across the board.
Kforce recorded revenue of $270.2 million. The nine analysts polled by S&P Capital IQ foresaw a top line of $273.8 million on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $289.0 million.
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 $0.26. The two earnings estimates compiled by S&P Capital IQ predicted $0.26 per share. GAAP EPS of $0.26 for Q3 were 18% higher than the prior-year quarter's $0.22 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 32.9%, 110 basis points better than the prior-year quarter. Operating margin was 5.8%, 10 basis points better than the prior-year quarter. Net margin was 3.4%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $270.0 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $0.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 86 members out of 97 rating the stock outperform, and 11 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $15.56.
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