Overview

* Kforce ( KFRC ) Q3 revenue of $332.6 mln beats analyst expectations

* Diluted EPS for Q3 was $0.63, down 16% yr/yr

* Company increases share buyback authorization to $100 mln

Outlook

* Kforce ( KFRC ) expects fourth-quarter revenue between $326 mln and $334 mln

* Company anticipates fourth-quarter EPS between $0.43 and $0.51

* Kforce ( KFRC ) forecasts fourth-quarter gross profit margins of 27.1% to 27.3%

Result Drivers

* TECHNOLOGY SEGMENT - Consultants on assignment in Technology segment improved throughout Q3, contributing to better-than-expected results

* FA BUSINESS GROWTH - FA business stabilized and grew meaningfully sequentially, contributing to Q3 performance

* SEQUENTIAL BILLING DAY GROWTH - Co expects sequential billing day growth in Technology and FA businesses in Q4

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $332.64 $328.32

Revenue mln mln (5

Analysts

)

Q3 EPS $0.63

Q3 Net $11.06

Income mln

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 ( KFRC ) is $40.50, about 37.5% above its October 31 closing price of $25.30

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

Press Release:

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(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.)