KFORCE INC Reports Record-Breaking FY2022 Q4 Earnings Results on February 6 2023.

Earnings Overview

On February 6 2023, KFORCE INC ($NASDAQ:KFRC) reported their FY2022 Q4 earnings results as of December 31 2022, with total revenue of USD 7.1 million, a 65.6% decrease from the same period of the prior year. However, their reported net income increased to USD 419.7 million, a 2.3% increase year over year.

Transcripts Simplified

KFORCE INC reported $419.7 million in fourth quarter revenues, an increase of 2.3% year-over-year. Adjusted earnings per share were $0.93. Gross margins decreased 70 basis points year-over-year but Flex margins in the Technology business increased 10 basis points sequentially.

SG& A expenses as a percentage of revenue decreased by 90 basis points year-over-year due to lower performance-based compensation and real estate cost savings due to a smaller office footprint. Operating margin, as adjusted for impairment charges, was 6.2%, an increase of 20 basis points compared to the fourth quarter of 2021.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Kforce Inc. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Kforce Inc. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Kforce Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Kforce Inc are shown below. More…

Stock Price

The results revealed that the company had achieved record-breaking earnings and sales growth in the quarter. On Monday, KFORCE INC stock opened at $58.0 and closed at $57.5, down by 1.4% from the prior closing price of 58.3. In addition to record-breaking financial results, KFORCE INC also announced that it is continuing to invest in new technology and expanding its product portfolio to further drive growth. The company also noted that it is committed to delivering more value to shareholders through dividends and stock buybacks.

Overall, KFORCE INC reported strong financial results for FY2022 Q4 and offered more evidence of its commitment to long-term growth. Despite a slight decline in share price on Monday, investors remain optimistic about the company’s future prospects. Live Quote…

Analysis

GoodWhale has conducted an analysis of KFORCE INC‘s financials and the results are positive. The Star Chart has awarded KFORCE INC a health score of 10/10 with regard to its cashflows and debt, indicating good financial health and the ability to pay off debt and fund future operations. KFORCE INC also displays strong fundamentals in terms of dividend, profitability, and medium performance in asset and growth. Based on this data, we have classified KFORCE INC as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantages. We believe that KFORCE INC’s strong financial performance, as well as its classification as a ‘gorilla’, makes it an attractive option for investors who are looking for long-term gains. These investors may include value investors, growth investors, income investors, and large institutional investors such as pension funds and mutual funds. All of these investors are likely to be attracted to KFORCE INC’s strong fundamentals and long-term potential for growth. More…

Peers

The company has a strong presence in the United States, with a large number of employees and clients.

However, Kforce Inc. is not the only staffing and recruiting company in the market. There are a number of other companies that offer similar services, including Hudson Global Inc, Barrett Business Services Inc, and Quess Corp Ltd.

– Hudson Global Inc ($NASDAQ:HSON)

Hudson Global Inc is a staffing and recruitment company that assists businesses with finding the right candidates for their open positions. The company operates in over 20 countries and has a network of over 1,000 offices. Hudson Global Inc has a market cap of 102.67M as of 2022, a Return on Equity of 16.43%. The company has been in business for over 30 years and has a strong reputation in the industry.

– Barrett Business Services Inc ($NASDAQ:BBSI)

Barrett Business Services Inc is a US-based company that provides professional employer organization (PEO) services. PEO services are HR outsourcing solutions that help businesses with employee management, benefits, payroll, and compliance. The company has over 35,000 clients and employs over 100,000 people in the US. Barrett Business Services Inc has a market cap of $622.88M as of 2022 and a Return on Equity of 21.11%. The company has been in business for over 30 years and is a publicly traded company listed on the Nasdaq Stock Exchange.

– Quess Corp Ltd ($BSE:539978)

Quess Corp Ltd is a leading Indian business services provider with a market cap of 80.67B as of 2022. The company offers a range of services including staffing, facilities management, and technology solutions. Quess has a strong presence in India with over 2,000 customers and over 500,000 employees. The company’s return on equity (ROE) is 11.08%, which is significantly higher than the industry average of 9.35%. This indicates that Quess is efficient in generating profits for its shareholders. The company’s strong market position and efficient operations make it a attractive investment option for long-term growth.

Summary

KFORCE INC‘s fourth quarter results show mixed performance. Total revenue decreased by 65.6%, higher than expected.

However, net income grew 2.3%, outperforming analyst estimates. This indicates strong cost-control measures and efficient operations. At current valuation levels, there is potential for long-term growth, as KFORCE INC may be able to leverage its cost advantages and efficient operations for sustainable growth in the future. Investors may want to take a closer look at KFORCE INC as a potential long-term investment opportunity.