Kforce Earnings: Everything You Must Know Now

Kforce Inc. (NASDAQ:KFRC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Kforce Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25% to $0.09 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Decreased 1.02% to $265.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Kforce Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $272.27 million.

Quoting Management: “The Firm’s results in the first quarter did not meet our expectations and we are not satisfied. Our Technology and Government businesses performed near anticipated levels; however, due to shortfalls primarily in our Finance and Accounting and Health Information Management businesses, our top line results were slightly below our expectations. We believe the significant investment in sales associates at the end of 2012, which has continued in the first quarter at more measured levels, is taking hold, and we are making progress toward our goal of accelerating revenue growth in the second half of this year,” said David L. Dunkel, Chairman and CEO. Mr. Dunkel continued, “We believe our diverse service offerings, as well as our highly elastic front and back office, position Kforce well. Demand for our services, particularly in Technology, remains solid. In addition, we continue to see a secular shift where our clients are increasingly seeking a higher degree of variability in the composition of their workforce as they look to mitigate economic uncertainty and the increasing complexity and costs of employment due to regulatory changes. There are significant opportunities as Kforce has only approximately a 3% market share in a growing domestic professional staffing market. I want to thank all of our employees and consultants for their hard work, dedication and progress this past quarter.”

Key Stats (on next page)…

Revenue decreased 1.57% from $269.84 million in the previous quarter. EPS decreased 62.5% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.26. For the current year, the average estimate has moved up from a profit of $0.99 to a profit of $1.00 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)