On Assignment Earnings: Here’s Why Investors are Buying Shares Now

On Assignment Inc. (NASDAQ:ASGN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.64%.

On Assignment Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.29% to $0.32 in the quarter versus EPS of $0.28 in the year-earlier quarter.

Revenue: Rose 47.57% to $417.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: On Assignment Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.28. It beat the average revenue estimate of $412.09 million.

Quoting Management: Commenting on the results, Peter Dameris, President and Chief Executive Officer of On Assignment, Inc., said, “Our results for the quarter were above our previously announced estimates and driven by strong year-over-year revenue growth and improved operating leverage. Our conversion of gross profit into Adjusted EBITDA was 35.5 percent for the quarter, up from 34.4 in the second quarter of 2012 on a pro forma basis and 30.1 percent in the preceding quarter.

Key Stats (on next page)…

Revenue increased 7.38% from $389.19 million in the previous quarter. EPS increased 60% from $0.20 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.31 to a profit $0.32. For the current year, the average estimate has moved up from a profit of $1.07 to a profit of $1.1 over the last ninety days.

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