Kforce Inc. (NASDAQ: KFRC) on Tuesday provided an update to its revenue trends, indicating the professional staffing firm is tracking ahead of expectations in both its technology flex segment and its finance and accounting flex segment. Second-quarter revenue is new predicted to be in the top half of the $20 million to $30 million range the company provided on its first-quarter earnings call.
Revenue in Kforce’s technology flex and finance and accounting flex segments are down approximately 2% and 22%, respectively, year over year on a quarter-to-date basis as of the most recent week. Based on recent trends, Kforce now expects revenue and earnings per share to exceed analyst consensus estimates for the second quarter.
“As the second quarter has unfolded, we have continued to see stabilization in each of our lines of business, especially in our technology business,” said CFO David Kelly.
Kforce will also support the government’s response to the Covid-19 health and economic crisis by partnering with several companies to provide consultants in certain roles.
“These opportunities provide an important level of support to our core FA Flex business as we navigate the revenue reductions brought on by this crisis,” Kelly said. While the engagements are fluid, Kforce has seen a “significant ramp” in these projects as the quarter has progressed.
“We believe our performance in our technology business speaks to the strength in the secular drivers of demand in this business, scarcity of talent, and their capabilities to work remotely,” said CEO David Dunkel. “Our position as a 100% domestically focused organization with approximately 80% of our business being concentrated in higher-end technology staffing and solutions gives us great confidence moving forward.”
Kforce issued the update ahead of its scheduled presentation today at Baird’s 2020 Virtual Global Consumer, Technology & Services Conference.
Kforce previously reported first-quarter revenue rose 2.6% with the growth coming in its technology temporary staffing business.