Human capital management provider Alight (NYSE: ALIT) will be reporting earnings this Tuesday after market hours. Here’s what to look for.
Alight beat analysts’ revenue expectations last quarter, reporting revenues of $534 million, down 2.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates.
Is Alight a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Alight’s revenue to decline 5.9% year on year, a further deceleration from the 4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Alight has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Alight’s peers in the professional staffing & hr solutions segment, some have already reported their Q2 results, giving us a hint as to what we can expect. ManpowerGroup delivered year-on-year revenue growth of 7.5%, beating analysts’ expectations by 2.9%, and Kforce reported revenues up 4.5%, in line with consensus estimates. ManpowerGroup traded up 34.1% following the results while Kforce’s stock price was unchanged.
Read our full analysis of ManpowerGroup’s results here and Kforce’s results here.
There has been positive sentiment among investors in the professional staffing & hr solutions segment, with share prices up 2.6% on average over the last month. Alight’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $44 (compared to the current share price of $16.98).
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