ASGN Inc. (NYSE:ASGN) shares fell sharply in after-hours trading on Wednesday, dropping over 23% overnight to around $31 after the company released its first-quarter results and outlook.
The stock had closed the regular session at about $40.43 before the decline.
Q1 Results Show Mixed Performance
ASGN provides digital transformation and technology services to commercial and government clients. For the quarter ended March 31, ASGN reported revenue of $968.3 million, with net income of $5.5 million and adjusted EBITDA of $83.6 million.
CEO Ted Hanson said the results were in line with the guidance range while noting weaker-than-expected adjusted EBITDA margins and ongoing cost control efforts.
ASGN’s Transformation: What To Expect Next
ASGN said it paid $290 million in cash for Quinnox in March and used its revolving credit facility to finance the deal. The company also bought back 0.8 million shares for $39 million, and said about $934 million remained under its repurchase authorization at quarter end.
The company said the Everforth name and NYSE symbol EFOR are scheduled to begin trading on April 24, 2026. ASGN described Everforth as a parent brand meant to bring its operating units under one identity.
Segment Performance
Commercial revenue was $675.5 million, while federal revenue totaled $292.8 million for the quarter. Commercial growth was supported by healthcare, consumer and industrial, and technology, media and telecom, while federal revenue declined year over year due to weaker activity in defense, intelligence, and civilian agencies.
Margins And Outlook
Gross margin fell to 27.5% from 28.4% a year earlier, reflecting a weaker commercial mix and FX-related pressure, while federal margins improved slightly.
For the second quarter, ASGN forecast revenue of $970 million to $1.0 billion, with net income of $8.0 million to $13.7 million and adjusted EBITDA of $85 million to $95 million. The company said its outlook assumes stable end-market conditions.
Trading Metrics, Technical Analysis
ASGN has a market capitalization of $1.67 billion, with a 52-week high of $60.75 and a 52-week low of $34.59. Over the past 12 months, the stock has fallen 18.12%.
ASGN is about 3.2% above its 52-week low of $34.59, sitting near the lower end of its yearly range.
Benzinga's Edge Stock Rankings ,ASGN is strong short-term but weak on medium and long-term trends.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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