Spherion Crop. (SFN: 7.46 +0.10 +1.36%) posted an unexpected profit in the final quarter of 2009 and growth projections are exponential for the next 2 years.
Company Description
Spherion is a staffing company that provides temporary, managed and permanent staffing services in the U.S. and Canada. Areas of employment range from clerical, finance and accounting to light industrial, IT and engineering as well as others.
Earnings on the Rise
Spherion reported quarterly results on Feb 3 that showed lower revenues, but higher earnings. Revenues dipped to $456 million, from $508 million last year.
Earnings came in at $0.2 million, up from a $126.2 million loss one year ago. This equates to earnings per share of 6 cents, compared to the projected 1 cent loss.
Earnings Jump
Spherion analysts raised full-year estimates for 2010 and 2011. The Zacks Consensus for the current year is up 4 cents to 10 cents. Next year’s projections average 41 cents, up from 25 cents. Last year the company essentially broke even, reporting 0 cents per share.
Acquisition
On Feb 2 Spherion reported that it will purchase Tatum LLC, an executive services firm. The deal is valued at $46 million in cash and stock and should add 3-5 cents per share in 2010.
The Chart
Initially the stock opened lower on the earnings news, but quickly came back and went on to set a new 52-week high.
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