Shares of Kforce experienced a decline in Monday's post-market trading session following the release of the company's second-quarter financial results. While earnings per share were higher compared to the previous year, revenue was lower.
At 5:26 p.m. ET, Kforce shares were trading 6.5% lower at $59.32 per share. The stock had a slight gain of 0.5% during the regular session, closing at $63.44.
Kforce reported earnings per share (EPS) of 95 cents for the second quarter, with revenue totaling $389.2 million. In the same period last year, the company had EPS of 82 cents on revenue of $405.9 million.
Outlook for the Third Quarter
For the third quarter, Kforce is expecting earnings per share in the range of 60 cents to 68 cents. Revenue is projected to be between $359 million and $367 million.
Uncertain Economic Environment
Joseph Liberatore, the president and chief executive of Kforce, stated that the second-quarter results reflect an ongoing uncertain economic environment. Liberatore noted that clients are exercising caution in their actions.
Adjusting Structural Costs
In response to the lower revenue levels, Kforce has decided to adjust its structural costs while still investing in key strategic initiatives. These actions are expected to reduce annual operating costs by approximately $14 million.