Overview

• Kforce Q3 revenue of $332.6 mln beats analyst expectations

• Diluted EPS for Q3 was $0.63, down 16% yr/yr

• Company increases share buyback authorization to $100 mln

Outlook

• Kforce expects fourth-quarter revenue between $326 mln and $334 mln

• Company anticipates fourth-quarter EPS between $0.43 and $0.51

• Kforce forecasts fourth-quarter gross profit margins of 27.1% to 27.3%

Result Drivers

• TECHNOLOGY SEGMENT - Consultants on assignment in Technology segment improved throughout Q3, contributing to better-than-expected results

• FA BUSINESS GROWTH - FA business stabilized and grew meaningfully sequentially, contributing to Q3 performance

• SEQUENTIAL BILLING DAY GROWTH - Co expects sequential billing day growth in Technology and FA businesses in Q4

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Kforce Inc is $40.50, about 37.5% above its October 31 closing price of $25.30

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw3dgRqla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)