Staffing firm Kforce's Q4 revenue beats expectations on Technology Flex strength

Overview

• Solutions firm's Q4 revenue of $332 mln beat analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company announced seventh consecutive annual increase in quarterly dividend

Outlook

• Kforce expects Q1 2026 revenue between $324 mln and $332 mln

• Company anticipates Q1 2026 EPS between $0.37 and $0.45

• Kforce projects Q1 2026 operating margins of 3.0% to 3.4%

Result Drivers

• TECHNOLOGY FLEX GROWTH - Sequential growth in Technology Flex revenue on a billing day basis was the highest since Q2 2022, indicating momentum in this segment, according to CEO Joseph J. Liberatore

• STRATEGIC INITIATIVES - Progress in implementing Workday and enhancing offshore delivery in India are seen as transformational, contributing to long-term financial goals

• FA FLEX REVENUE - FA Flex revenue increased 2.4% sequentially, with a 5.7% increase on a billing day basis, despite a year-over-year decline

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for Kforce Inc is $37.50, about 6.1% above its January 30 closing price of $35.33

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw5WJZPwa

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