With the labor market slowly but surely improving, this seems
like a great time for a company like
On Assignment, Inc.
) to make some kind of move. So yesterday, the temporary employment
services company announced that it would be buying Apex Systems
Inc., the sixth largest IT staffing firms in the country.
The $600 million transaction is expected to close in May. It will
create one of the biggest staffing companies in the U.S. The deal
should be significantly accretive to ASGN's EPS in 2012 and beyond.
The transaction seems to be getting the 'thumbs up' from the
market, as shares of On Assignment soared more than 26% Wednesday.
That easily put the company at the very apex of the Zacks #1 Rank
Top Performers List. In fact, it was more than three times better
than the runner up.
ASGN was doing quite well for itself before this acquisition, as
its Zacks #1 Rank attests. The Zacks Consensus Estimate for 2012 is
80 cents per share, which is up 12.7% in two months. In that same
period of time, the Zacks Consensus Estimate for 2013 advanced
12.3% to 91 cents.
At the moment, analysts are expecting profit growth of nearly 14%
for 2013 over 2012.
Last month, ASGN reported fourth-quarter earnings per share of 20
cents, which was 25% better than the Zacks Consensus Estimate of 16
cents. Revenues soared 34% to $161.8 million.
The company has an excellent record of outperforming quarterly
profit expectations. As the graph below shows, it has now beaten
for seven consecutive quarters. Put another way, it has beaten in
nine of the past ten quarters.
ASGN is a leading global provider of highly skilled, hard-to-find
professionals in the growing life sciences, healthcare, and
technology sectors, where quality people are the key to success.
ON ASSIGNMENT (
): Free Stock Analysis Report
To read this article on Zacks.com click here.