Kforce (NYSE:KFRC), a professional staffing firm, is set to announce its earnings this Monday after market close, and expectations are tempered as the company faces ongoing challenges.
In the previous quarter, Kforce reported revenues of $334.3 million, falling short of year-over-year expectations with a decrease of 6.2%. Analysts were disappointed as Kforce not only missed earnings per share (EPS) estimates but also lowered its revenue guidance for the next quarter, sparking concerns about its future performance.
This upcoming earnings report is expected to reveal a decline of around 7.3% in revenue, bringing the total to approximately $327.6 million. Adjusted earnings are forecasted at $0.56 per share, which indicates a further slowdown from the prior year’s 5.3% decline.
The outlook for Kforce is cautious, as analysts have not significantly altered their estimates leading up to the earnings call, maintaining expectations for the company’s performance. Notably, Kforce has struggled over the past two years, missing Wall Street’s revenue targets five times.
To gauge the industry landscape, several of Kforce’s competitors have recently reported their third-quarter earnings. ManpowerGroup saw a year-over-year revenue boost of 2.3%, exceeding expectations, while Robert Half experienced a 7.5% revenue decline, aligning closely with predictions. Both firms saw their stock prices react negatively; ManpowerGroup dropped by 11.4%, while Robert Half fell 1.2%.
The professional services sector has been navigating a challenging economic environment characterized by uncertainties regarding potential tariffs and corporate tax reforms, which have contributed to a more cautious investor sentiment. On average, professional services stocks have seen a decline of 2.8% in the past month, with Kforce experiencing a more significant drop of 15.9%. Currently, analysts maintain a price target of $42 for Kforce, contrasted with its current trading price of $25.30, signifying potential upside should the company manage a turnaround.
As the market braces for Kforce’s earnings report, investors are watching closely in hopes of signs that the company can regain its footing amidst a tough industry climate.