On Assignment Inc. fell short of fourth-quarter profit estimates but beat revenue forecasts on Wednesday, citing growth in its IT business.
The Calabasas staffing company reported adjusted net income of $20.5 million (39 cents a share) in the quarter ended Dec. 31, compared to $32.4 million (59 cents) for the same quarter last year. Revenue increased nearly 12.5 percent to $476 million.
Analysts on average expected net income of 53 cents a share on revenue of $472 million, according to Thomson Financial Network.
The company noted that its revenue was boosted by growth in its largest segments, including Apex, the division that supplies computer and IT professionals. Apex accounts for 64.7 percent of total revenues and grew by 9.5 percent during the quarter.
In other news, the company finalized the sale of its Physician segment on Feb. 1 for $123 million. The net proceeds from the sale were estimated to be between $102 and $105 million.
On Assignment released its results after the close of markets on Wednesday.
Shares closed up 28 cents, or 74 percent, to $37.89 on the New York Stock Exchange.