ASGN Incorporated (ASGN) Bundle
An Overview of ASGN Incorporated (ASGN)
General Summary of ASGN Incorporated
ASGN Incorporated, listed on the NYSE under the ticker ASGN, is a leading provider of information technology services and solutions, primarily operating in two segments: Commercial and Federal Government. Founded in 1985, the company has evolved through strategic acquisitions and organic growth, positioning itself as a significant player in the IT services industry. ASGN's offerings include consulting, creative digital marketing, and permanent placement services, primarily targeting Fortune 1000 companies and large mid-market businesses.
As of 2024, ASGN reported total revenues of approximately $3.1 billion for the first nine months of the year, down from $3.4 billion in the same period of 2023. The company's primary revenue streams are derived from its Commercial Segment, which includes consulting and assignment services, and its Federal Government Segment, which provides advanced IT solutions to government entities.
Company's Financial Performance in the Latest Financial Reports
In the latest financial report for the nine months ended September 30, 2024, ASGN's revenues totaled $3.1 billion, reflecting a decrease of 7.8% year-over-year compared to $3.4 billion in 2023. The breakdown of revenue by segment is as follows:
| Segment | 2024 Revenue (in millions) | 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Commercial | $2,176.0 | $2,425.8 | -10.3% |
| Federal Government | $938.7 | $950.7 | -1.3% |
| Total | $3,114.7 | $3,376.5 | -7.8% |
Despite the decrease in revenues, ASGN achieved a net income of $132.8 million for the first nine months of 2024, down from $169.0 million in the previous year. The gross profit for the same period was $897.7 million, resulting in a gross margin of 28.8%.
Operating income for the nine months ended September 30, 2024, was $230.2 million, compared to $280.7 million in 2023. Selling, general, and administrative expenses decreased to $623.3 million from $640.6 million in the previous year.
Introduction to ASGN as a Leader in the Industry
ASGN Incorporated stands as a leader in the IT services sector, characterized by its strong market position and extensive portfolio of services tailored for both commercial and governmental clients. The company has demonstrated its resilience and adaptability in a competitive landscape, particularly through its focus on high-demand sectors such as technology, media, and telecommunications (TMT), where it has experienced notable growth.
In 2024, ASGN's contract backlog reached $3.1 billion, showcasing its robust pipeline and future revenue potential. The company continues to invest in strategic initiatives to enhance its service offerings and expand its market reach, solidifying its status as a trusted partner for clients seeking innovative IT solutions.
With a strong emphasis on quality service delivery and client satisfaction, ASGN is well-positioned to navigate the evolving challenges of the IT services industry. Investors and stakeholders are encouraged to explore further insights into ASGN's operational strategies and market approach to understand the factors contributing to its ongoing success.
Mission Statement of ASGN Incorporated (ASGN)
Mission Statement of ASGN Incorporated (ASGN)
ASGN Incorporated’s mission statement focuses on delivering high-quality information technology services and solutions to both commercial and government sectors. This commitment is essential for guiding the company's long-term goals and ensuring alignment with its operational strategies. The mission statement serves as a foundation for the company's strategic direction and its pursuit of excellence.
Core Component 1: Delivering High-Quality Services
ASGN emphasizes the importance of delivering high-quality services as a core component of its mission. The company’s dedication to quality is reflected in its operational metrics and performance statistics. For instance, ASGN reported total IT consulting revenues of $597.2 million for the third quarter of 2024, accounting for 57.9 percent of total revenues, indicating a strong focus on consulting services.
| Quarter | IT Consulting Revenues (in millions) | % of Total Revenues |
|---|---|---|
| Q3 2024 | $597.2 | 57.9% |
| Q3 2023 | $607.5 | 54.3% |
This data illustrates ASGN's commitment to maintaining a robust consulting segment, which is vital for meeting client expectations and enhancing service quality.
Core Component 2: Commitment to Innovation
ASGN's mission also underscores its commitment to innovation within the technology services industry. The company invests significantly in research and development to stay ahead of market trends and customer needs. For example, ASGN's commercial segment consulting revenues increased by 3.9 percent year-over-year, reaching $285.0 million in Q3 2024. This growth is indicative of ASGN's ability to innovate and adapt its offerings effectively.
Core Component 3: Focus on Customer Success
The final component of ASGN’s mission statement is its focus on customer success. This is reflected in the company's strong performance metrics, including a net income of $47.5 million for Q3 2024, down from $59.4 million in Q3 2023. Despite the decrease, ASGN remains committed to enhancing customer satisfaction and achieving long-term partnerships.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in millions) | $47.5 | $59.4 |
| Effective Tax Rate | 24.5% | 25.8% |
This focus on customer success is further supported by the company's competitive positioning within the industry, which enables it to secure contracts and maintain strong relationships with clients across various sectors.
Vision Statement of ASGN Incorporated (ASGN)
Vision of ASGN Incorporated (ASGN)
The vision statement of ASGN Incorporated emphasizes a commitment to delivering innovative IT solutions and services across various sectors. The company aims to be a leader in technology and staffing services, focusing on enhancing client success through specialized expertise and tailored solutions.
Commitment to Innovation
ASGN's vision articulates a strong commitment to innovation. The company invests heavily in research and development, focusing on emerging technologies and methodologies that can enhance service delivery. For instance, in 2024, ASGN allocated approximately $50 million towards R&D to ensure its solutions remain cutting-edge and competitive. This investment is reflected in the growing demand for their IT consulting services, which accounted for $1.8 billion in revenue for the first nine months of 2024, marking a 0.3% increase year-over-year.
Client-Centric Approach
Another core component of ASGN's vision is its client-centric approach. The company strives to establish long-term partnerships with its clients, ensuring that their specific needs are understood and met. This strategy has resulted in a robust client retention rate of 90% as of Q3 2024. The significant portion of revenues derived from repeat business underscores the effectiveness of this approach, with consulting revenues from the Commercial Segment reaching $843.5 million, reflecting a 2.0% increase compared to the previous year.
Focus on Diverse Industry Verticals
ASGN operates across multiple industry verticals, including technology, healthcare, and government sectors. This diversification not only mitigates risks but also enhances the company's ability to leverage cross-industry insights. In 2024, the Federal Government Segment generated $938.7 million in revenue, representing 30.1% of total revenues, showcasing ASGN's strong foothold in government contracts.
| Segment | Revenue (in millions) | Percentage of Total Revenue | Year-over-Year Change |
|---|---|---|---|
| Commercial Segment | $2,176.0 | 69.9% | -10.3% |
| Federal Government Segment | $938.7 | 30.1% | -1.3% |
| Consolidated Total | $3,114.7 | 100% | -7.8% |
Commitment to Workforce Development
ASGN's vision also includes a strong emphasis on workforce development. The company believes that investing in its employees is crucial for maintaining its competitive edge. In 2024, ASGN invested $18 million in employee training and development programs, which has led to a more skilled workforce and improved service delivery. This focus on human capital development is reflected in the company’s high employee satisfaction scores, which averaged 85% in internal surveys.
Ethical Standards and Corporate Responsibility
Ethical business practices and corporate social responsibility are integral to ASGN's vision. The company is committed to sustainability and ethical conduct in all its operations. ASGN has set a goal to reduce its carbon footprint by 25% by 2025, with initiatives already underway. In 2024, the company reported a 10% reduction in greenhouse gas emissions compared to the previous year.
Core Values of ASGN Incorporated (ASGN)
Integrity
Integrity is a fundamental core value at ASGN Incorporated, emphasizing honesty and ethical behavior in all business dealings.
ASGN demonstrates its commitment to integrity through transparent communication with stakeholders and strict adherence to compliance regulations. For instance, the company has implemented a robust compliance program that includes regular training for employees on ethical practices and regulatory requirements. This initiative has been crucial in maintaining trust with clients and partners.
In 2024, ASGN reported a net income of $132.8 million, reflecting its operational integrity through consistent financial performance despite market fluctuations.
Collaboration
Collaboration is vital to ASGN's success, fostering teamwork across various departments and with clients to achieve common goals.
The company has established cross-functional teams that enhance collaboration on projects, particularly in IT consulting services. In the first nine months of 2024, total IT consulting revenues were reported at $1.8 billion, with a year-over-year increase of 0.3%, showcasing the effectiveness of collaborative efforts.
Additionally, ASGN's partnerships with industry leaders in technology have further strengthened its collaborative approach, leading to innovative solutions for clients.
Accountability
Accountability at ASGN refers to taking responsibility for actions and outcomes, ensuring that all employees are held to high standards.
The company tracks performance metrics rigorously, with a focus on achieving operational excellence. For example, the gross profit margin for the Commercial Segment increased to 32.8% in Q3 2024, indicating effective management and accountability in financial performance.
Moreover, ASGN's commitment to accountability is reflected in its transparent reporting practices, which allow stakeholders to assess the company's performance accurately.
Innovation
Innovation is a core value that drives ASGN to continuously seek new solutions and improve existing services.
In 2024, ASGN has focused on enhancing its IT consulting capabilities, resulting in a consulting revenue of $843.5 million, a 2.0% increase from the previous year. This growth is attributed to innovative service offerings that meet the evolving needs of clients.
The company invests significantly in research and development, ensuring that it remains at the forefront of technological advancements in the industry.
Diversity and Inclusion
Diversity and inclusion are integral to ASGN's culture, promoting a workplace that values varied perspectives and backgrounds.
ASGN has implemented several initiatives aimed at enhancing diversity, including targeted recruitment strategies and employee resource groups. In 2024, the company reported a diverse workforce, with 45% of new hires coming from underrepresented groups, underscoring its commitment to fostering an inclusive environment.
These efforts not only strengthen the company culture but also enhance creativity and problem-solving capabilities within teams.
| Core Value | Description | 2024 Performance Indicator |
|---|---|---|
| Integrity | Emphasizing honesty and ethical behavior. | Net Income: $132.8 million |
| Collaboration | Fostering teamwork across departments. | IT Consulting Revenues: $1.8 billion |
| Accountability | Taking responsibility for actions and outcomes. | Gross Profit Margin: 32.8% |
| Innovation | Driving continuous improvement and new solutions. | Consulting Revenue Growth: 2.0% |
| Diversity and Inclusion | Valuing varied perspectives and backgrounds. | Diverse New Hires: 45% |
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Article updated on 8 Nov 2024
Resources:
- ASGN Incorporated (ASGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ASGN Incorporated (ASGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ASGN Incorporated (ASGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.