Kforce Beats Up on Analysts Yet Again

Kforce (Nasdaq: KFRC  ) reported earnings on Feb. 7. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Kforce beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins shrank, and net margins were steady.
Revenue details
Kforce reported revenue of $285.6 million. The eight analysts polled by S&P Capital IQ expected revenue of $281.7 million. Sales were 10% higher than the prior-year quarter's $258.5 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.20. The eight earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.20 for Q4 were 25% higher than the prior-year quarter's $0.16 per share.

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.2%, 70 basis points worse than the prior-year quarter. Operating margin was 4.1%, 20 basis points worse than the prior-year quarter. Net margin was 2.5%, about the same as the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $285.3 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.19 billion. The average EPS estimate is $0.86.
Investor sen! timentThe stock has a five-star rating (out of five) at Motley Fool CAPS, with 87 members rating the stock outperform and 10 members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Kforce a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kforce is outperform, with an average price target of $15.38.
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