ASGN Incorporated Just Missed Earnings - But Analysts Have Updated Their Models

ASGN Incorporated (NYSE:ASGN) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of US$4.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$2.60, missing estimates by 7.1%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, ASGN's six analysts are forecasting 2026 revenues to be US$4.01b, approximately in line with the last 12 months. Per-share earnings are expected to jump 34% to US$3.56. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.99b and earnings per share (EPS) of US$3.44 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for ASGN

There's been no major changes to the consensus price target of US$54.33, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ASGN at US$65.00 per share, while the most bearish prices it at US$42.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that ASGN's revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2026 being well below the historical 1.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ASGN.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ASGN following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ASGN's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on ASGN. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ASGN going out to 2028, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for ASGN that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.