Overview

* Mastech Digital ( MHH ) 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 ( MHH ) confident in long-term demand drivers despite limited visibility

* Company preparing for long-term growth and AI-first transition

* Mastech Digital ( MHH ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $49.10 $47.90

Revenue mln mln (2

Analysts

)

Q2 Net $135,000

Income

Q2 Gross $13.82

Profit mln

Q2 $27,000

Income

from

Operatio

ns

Q2 $210,000

Pretax

Profit

Analyst Coverage

* Wall Street's median 12-month price target for Mastech Digital Inc ( MHH ) 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:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)