Why Kforce's Shares Popped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing company Kforce jumped 14% today after the company released earnings.
So what: Third-quarter revenue was up 10.9% from a year ago, to $299.7 million, and net income came in at $9.0 million, or $0.27 per share. Management also said it expects growth to accelerate next quarter, which means the current $0.28 per-share earnings estimate may be a little low.
Now what: The company grew across all of its segments, which is a good sign for any company. I also like the momentum that management has projected for Q4, especially considering the fact that Q3 growth was already into double digits. Shares trade at 18 time next year's estimate, which is steep even with the growth, but I think there's room to run considering the strength across the staffing industry.
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The article Why Kforce's Shares Popped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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