There's been a notable change in appetite for ASGN Incorporated (NYSE:ASGN) shares in the week since its first-quarter report, with the stock down 12% to US$51.37. Statutory earnings per share fell badly short of expectations, coming in at US$0.48, some 26% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at US$968m. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, ASGN's six analysts currently expect revenues in 2025 to be US$3.95b, approximately in line with the last 12 months. Statutory earnings per share are expected to fall 19% to US$2.89 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$4.01b and earnings per share (EPS) of US$3.67 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

See our latest analysis for ASGN

The average price target fell 22% to US$61.83, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ASGN analyst has a price target of US$75.00 per share, while the most pessimistic values it at US$53.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.2% by the end of 2025. This indicates a significant reduction from annual growth of 3.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ASGN is expected to lag the wider industry.

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The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ASGN. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of ASGN's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ASGN analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - ASGN has  1 warning sign  we think you should be aware of.

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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.

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