By Rob Curran
Shares of government contractor ASGN tumbled premarket as DOGE, or the Department of Government Efficiency, took a bite out its first-quarter net income and revenue.
Late Wednesday, the Richmond, Va., company, which provides staffing and information-technology services to government agencies and the private sector, posted quarterly earnings of $5.5 million, or 13 cents a share, down from $20.9 million, or 48 cents a share, a year earlier.
Excluding certain onetime items, ASGN posted adjusted earnings of 69 cents a share, missing the Wall Street target of 98 cents a share by a wide margin.
First-quarter revenue was unchanged from a year earlier at $968.3 million. A slight increase in commercial revenue to $675.5 million was offset by a drop in federal-government revenue. Cuts made by Elon Musk's DOGE to defense, intelligence and civilian agencies weighed on federal revenue, the company said.
Spurred by DOGE, the U.S. government has cut tens of thousands of jobs under the Trump administration.
During the quarter, ASGN acquired Quinnox, an IT company focused on commercial markets, for $290 million in cash.
For the second quarter, ASGN targeted earnings of 19 cents to 33 cents a share on revenue in a range between $970 million and $1 billion.
Shares of ASGN plunged 30% to $27.90, premarket.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-23-26 0815ET
