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.
For comments and feedback: editorial@rttnews.com