ASGN revenue rises nearly 19% in Q3, commercial segment up 26%

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October 28, 2021

ASGN Inc. (NYSE: ASGN) reported revenue rose 18.7% year over year in the third quarter. The increase was 14.1% excluding the impact of acquired businesses; ASGN had acquired IndraSoft Inc. and Enterprise Resource Performance Inc. during the quarter.

Revenue surpassed previous guidance and nearly all ASGN’s divisions are reporting record revenue, President and CEO Ted Hanson said in a statement.

(US$ millions) Q3 2021 Q3 2020 % change
Revenue $1,073.8 $904.4 18.7%
Gross profit   $308.7 $236.3 30.6%
Gross margin   28.7% 26.1%  
Net income $212.0 $52.3 305.4%

Commercial segment revenue growth reflects double-digit growth in its high-margin consulting, creative/marketing and permanent placement services, the company reported.

Revenue by segment

(US$ millions) Q3 2021 Q3 2020 % change
Commercial $774.9 $615.8 25.8%
Federal government $298.9 $288.6 3.6%

ASGN’s commercial segment includes IT and marketing/creative staffing — the company’s Apex and CyberCoders businesses among others — while its federal government business provides solutions to the federal government.

Separately, ASGN closed on the sales of its Oxford business on Aug. 17, 2021, for $525.0 million; Oxford is treated as a discontinued operation.

Retirement

ASGN also announced that George Wilson, president of its ECS division, will retire at the end of this year. Taking on the role will be John Heneghan, who currently serves as chief operating officer of the federal government segments, ECS.

Guidance

The fourth-quarter revenue forecast has been raised. ASGN now forecasts revenue will rise between 12.2% and 14.4% year over year.

Share price and market cap

Shares in ASGN were up 3.16% to $118.43 as of 12:37 p.m. Eastern time; they were 5.52% below their 52-week high, according to FT.com. ASGN has a market cap of $6.07 billion.

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