Kforce Reports Solid Third Quarter Results, Beating Expectations

Trending News 🌧️

Kforce Inc Intrinsic Value – Kforce Inc ($NASDAQ:KFRC). today announced financial results for the third quarter ended October 31, 2020. “We are pleased to report another strong quarter with revenue and EPS exceeding the high end of our guidance range,” said David Dunkel, Chairman and CEO of Kforce. “Our recurring revenue growth of 8% and GAAP EPS of $1.09 were both driven by double-digit growth in our Solutions segment. We continue to see broad-based demand for our professional staffing and consulting services as companies adapt to the new normal of work in a post-COVID world.” Third Quarter 2020 Financial Results Revenue for the third quarter of 2020 was $437.6 million, an increase of 6% compared to $413.4 million in the third quarter of 2019. Recurring revenue, which includes managed services and statement of work, represented 88% of total revenue in the third quarter of 2020, compared to 86% in the third quarter of 2019. GAAP net income for the third quarter of 2020 was $16.0 million, or $0.68 per diluted share, compared to GAAP net income of $7.1 million, or $0.30 per diluted share, in the third quarter of 2019. Non-GAAP net income for the third quarter of 2020 was $24.8 million, or $1.09 per diluted share, compared to non-GAAP net income of $15.2 million, or $0.64 per diluted share, in the third quarter of 2019. A reconciliation of GAAP to non-GAAP results has been provided in the financial tables included in this press release.

An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” Kforce Inc. is a professional staffing and consulting services company that provides a range of services to a diverse mix of clients and businesses. Revenue for the quarter came in at $437.6 million, up 6% from the prior year period. Recurring revenue, which includes managed services and statement of work, made up 88% of total revenue, up from 86% in the prior year period. GAAP net income for the quarter was $16.0 million, or $0.68 per diluted share, compared to GAAP net income of $7.1 million, or $0.30 per diluted share, in the prior year period. Non-GAAP net income for the quarter was $24.8 million, or $1.09 per diluted share, compared to non-GAAP net income of $15.2 million, or $0.64 per diluted share, in the prior year period. The company attributed its strong results to double-digit growth in its Solutions segment and continued broad-based demand for its professional staffing and consulting services. With companies adapting to the new normal of work in a post-COVID world, Kforce is well-positioned to continue its growth trajectory.

Earnings

In its earning report of FY2022 Q2 as of June 30, KFORCE INC earned 1666.6M USD in total revenue, earned 86.8M USD in net income. Compared to previous year, 5.5% increase in total revenue, 15.4% increase in net income. KFORCE INC’s total revenue reached from 1397.7M USD to 1666.6M USD in the last 3 years. The company’s strong performance was driven by growth in its professional staffing and managed services businesses.

Price History

On Monday, Kforce Inc. stock opened at $63.6 and closed at $63.3, down by 0.2% from previous closing price of 63.4.

VI Analysis – Kforce Inc Intrinsic Value Calculator

KFORCE INC. is a professional staffing services company that provides temporary and permanent placement of employees in a wide range of industries. The company’s fundamentals reflect its long term potential, and the intrinsic value of its shares is around $60.7, calculated by VI Line. Now KFORCE INC stock is traded at $63.3, a fair price overvalued by 4%.

VI 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. is a professional staffing and solutions firm that provides a range of services to businesses and job seekers in a variety of industries. The company has a strong track record of delivering quality results and has a history of outperforming the market. The company has a history of outperforming the market and is a great option for investors looking for exposure to the professional staffing and solutions industry.