Monday, On Assignment Inc. (ASGN), reported a significant rise in net income on a revenue growth of 8.5% for the second quarter, as both earnings surpassed analysts' expectations. The company also provided its earnings and revenue guidance for the third quarter.
The US-based diversified professional staffing firm recorded a higher net income of $6.1 million or $0.17 per share, compared with $2.9 million or $0.07 per share last year. Net income for the quarter was impacted adversely by a non-cash gain of $1.1 million or $0.02 per share related to the mark to market of the Company's $73 million interest rate swap.
Analysts polled by First Call/Thomson Financial expected Earnings per share for the quarter at $0.13.Revenues for the quarter rose 8.5% to $156.1 million from $143.9 million in prior year's same quarter. Street analysts expected revenues of $155.31 million for the quarter.Gross margin was 32.5%, up from 32.1% in the second quarter of 2007.
For the first-half, net income was higher at $8.5 million or $0.25 per share compared with $3.8 million or $0.11 per share last year. Revenues for the same period rose to $308.5 million from $266.5 million prior year.
The company provided its outlook for the third quarter with revenues expected in the range of $156.5 million to $160 million while earnings are expected in the range of $4.9 million to $6.2 million. EPS for the third quarter is expected between $0.14 and $0.17.
Analysts currently expect third quarter earnings of $0.15 per share and net revenue of $159.97 million.
The stock is currently trading down 5.42% at $8.20 on the Nasdaq.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.