Kforce Earnings: What To Look For From KFRC

Professional staffing firm Kforce (NYSE:KFRC) will be announcing earnings results this Monday after market close. Here’s what investors should know.

Kforce missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $330 million, down 6.2% year on year. It was a softer quarter for the company, with a miss of analysts’ EPS estimates.

Is Kforce a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Kforce’s revenue to decline 5.9% year on year to $335.4 million, improving from the 8.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kforce has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Kforce’s peers in the professional services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ManpowerGroup posted flat year-on-year revenue, beating analysts’ expectations by 3.6%, and Robert Half reported a revenue decline of 7%, topping estimates by 1.1%. ManpowerGroup’s stock price was unchanged after the results while Robert Half was down 6.1%.

Read our full analysis of ManpowerGroup’s results here and Robert Half’s results here.

There has been positive sentiment among investors in the professional services segment, with share prices up 3.3% on average over the last month. Kforce is up 12.5% during the same time and is heading into earnings with an average analyst price target of $51.50 (compared to the current share price of $46.45).

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