Mastech Digital Q2 revenue beats estimates, rises 2%
Overview
Mastech Digital Q2 revenue rises 2% sequentially, beating analyst expectations
Non-GAAP EPS for Q2 at $0.15, down from $0.19 last year
IT Staffing Services segment drives revenue growth with higher bill rates
Outlook
Company sees early signs of stabilization in broader environment
Mastech Digital confident in long-term demand drivers despite limited visibility
Company preparing for long-term growth and AI-first transition
Mastech Digital notes cautious client decision-making affecting near-term outlook
Result Drivers
IT STAFFING GROWTH - IT Staffing Services segment revenue grew 3%, driven by higher bill rates and improved margins
DATA AND ANALYTICS SOFTNESS - Data and Analytics Services segment faced slower client decision-making and cautious spending, impacting order bookings
MARGIN EXPANSION - Company expanded margins through disciplined pricing and focused execution, despite measured demand environment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $49.10 mln | $47.90 mln (2 Analysts) |
Q2 Net Income |
| $135,000 |
|
Q2 Gross Profit |
| $13.82 mln |
|
Q2 Income from Operations |
| $27,000 |
|
Q2 Pretax Profit |
| $210,000 |
|
Analyst Coverage
Wall Street's median 12-month price target for Mastech Digital Inc is $13.70, about 46.8% above its August 12 closing price of $7.29
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nPn534dzMa
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