Q3 2024 ASGN Inc Earnings Call Transcript
Key Points
- ASGN Inc (ASGN) reported Q3 2024 revenues of $1.031 billion, which were stable compared to the second quarter and within the company's guidance range.
- The adjusted EBITDA margin was 11.3%, reflecting the company's shift towards higher-end, high-value consulting solutions.
- Commercial consulting revenues improved 3.9% year over year and 1.2% sequentially, indicating growth in this segment.
- The federal government segment saw a sequential revenue improvement of 1%, with net new contract awards totaling $666.4 million, resulting in a book-to-bill ratio of 2.1 times for the quarter.
- ASGN Inc (ASGN) has a strong pipeline of work, with significant bookings in both commercial and government sectors, indicating pent-up demand for its IT services.
- Overall revenues decreased by 7.7% year over year, with the commercial segment down 8.1% and the federal government segment down 6.6% compared to the prior year.
- Global economic uncertainty is impacting client IT services spending, with no meaningful increase observed yet.
- The health care industry vertical remained down year over year and sequentially, indicating challenges in this sector.
- Perm placement revenues have weakened, and the fourth quarter is expected to see a decrease in margins due to client furloughs and fewer billable days.
- ASGN Inc (ASGN) anticipates no uptick in clients' IT spend in the fourth quarter, reflecting ongoing caution in the market.
Greetings and welcome to the ASGN Incorporated third-quarter 2024 earnings call. (Operator Instructions)
It is now my pleasure to introduce your host, Kimberly Esterkin, Investor Relations. Thank you. You may begin.
Good afternoon. Thank you for joining us today for ASGN's third-quarter 2024 conference call. With me are Ted Hanson, Chief Executive Officer; Rand Blazer, President; and Marie Perry, Chief Financial Officer.
Before we get started, I would like to remind everyone that our commentary contains forward-looking statements. Although we believe these statements are reasonable, they are subject to risks and uncertainties, and as such, our actual results could differ materially from those statements.
Certain of these risks and uncertainties are described in today's press release and in our SEC filings. We do not assume any obligation to update statements made on this call. For your convenience, our prepared remarks and supplemental materials can be found in the
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