Asgn Incorporated (NYSE: ASGN) recently reported its financial results for the third quarter of 2024, highlighting a number of key metrics. Revenues for the quarter were $1.031 billion, with net income at $47.5 million. The adjusted EBITDA, a non-GAAP measure, stood at $116.9 million, representing 11.3 percent of revenues for the period. Operating cash flows were reported at $135.8 million, while free cash flow, also a non-GAAP measure, amounted to $127.9 million. The company also repurchased approximately 1.0 million shares of its common stock for $95.6 million.
The breakdown of revenues showed that it consulting revenues accounted for approximately 57.9 percent of the total revenues. Within this segment, the commercial segment saw revenues of $718.8 million, while the federal government segment recorded revenues of $312.2 million. Notably, new bookings for the commercial segment for the trailing-twelve-month period were $1.2 billion, with a book-to-bill ratio of 1.1 to 1. For the federal government segment, new contract awards for the same period totaled $1.1 billion, with a book-to-bill ratio of 0.9 to 1.
The company's CEO, Ted Hanson, commented on the results, noting that market demand remains relatively stable, with revenues of $1.031 billion falling within the guidance range. Hanson also highlighted the continued evolution of the business toward higher-end, high-value IT consulting work, which now represents nearly 60 percent of total revenues.
Comparing the third quarter of 2024 to the previous year's period, several changes are evident. Total revenues decreased from $1.12 billion to $1.031 billion, with commercial segment revenues showing a decline from $782.4 million to $718.8 million. However, it's worth noting that within the commercial segment, the technology, media, and telecom (TMT) vertical experienced double-digit growth year-over-year.
The gross margin for the third quarter of 2024 expanded to 29.1 percent, up 20 basis points from the same period in 2023. The company also reported an increase in SG&A expenses to $207.5 million, compared with $206.0 million in the third quarter of 2023.
Looking ahead to the fourth quarter of 2024, Asgn Incorporated provided financial estimates, which assume no deterioration in the markets it serves. The company's estimated revenues for the fourth quarter range from $990.0 million to $1,010.0 million, with a projected gross margin of 28.4% to 28.6%. The estimated adjusted EBITDA for the period is between $103.0 million and $107.0 million.
It's important to note that these estimates do not include any acquisition, integration, or strategic planning expenses.
Asgn Incorporated is a leading provider of IT services and solutions to the commercial and government sectors, assisting corporate enterprises and government organizations in developing, implementing, and operating critical IT and business solutions. As a result of these announcements, the company's shares have moved 0.4% on the market, and are now trading at a price of $93.04. If you want to know more, read the company's complete 8-K report here.
