The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kforce met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins increased, net margins shrank.
Kforce reported revenue of $269.8 million. The eight analysts polled by S&P Capital IQ foresaw net sales of $267.6 million on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $285.6 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 $0.24. The eight earnings estimates compiled by S&P Capital IQ averaged $0.22 per share. GAAP EPS of $0.17 for Q4 were 15% lower than the prior-year quarter's $0.20 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 32.8%, 160 basis points better than the prior-year quarter. Operating margin was 5.1%, 190 basis points better than the prior-year quarter. Net margin was 2.3%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $275.5 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.14 billion. The average EPS estimate is $0.99.
The stock has a four-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 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 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 $15.22.
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