Everforth Q2 revenue and adjusted EPS beat estimates

Overview

• Technology and digital engineering firm's Q2 revenue beat analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased $11.5 mln in shares and refinanced credit facility post-quarter

Outlook

• Everforth sees Q3 2026 revenues between $994 mln and $1,024 mln

• Company expects Q3 2026 adjusted EBITDA of $95 mln to $105 mln

• Everforth projects Q3 2026 net income of $14.5 mln to $23 mln

Result Drivers

• COMMERCIAL SEGMENT BOOKINGS - Co said improved bookings conversion in Commercial enterprise platform portfolio drove revenues above guidance

• TMT INDUSTRY GROWTH - Technology, Media and Telecom industry was the only Commercial sub-segment to grow year-over-year, up 5.6%

• COMMERCIAL GROSS MARGIN PRESSURE - Lower mix of high-margin permanent placement revenues and FX changes reduced Commercial segment gross margin

Company press release: ID:nBw3vG60za

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy."

• Wall Street's median 12-month price target for Everforth Inc is $27.00, about 16.1% above its July 28 closing price of $23.25

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• July 29 - Cognizant lifts annual profit forecast on strong financial services growth

• July 27 - Kforce Q2 revenue slightly beats estimates as Flex sales grow

• July 28 - Exlservice Q2 revenue beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)