Kforce (NASDAQ:KFRC) Shares Gap Down on Disappointing Earnings

Kforce Inc. (NASDAQ:KFRC) gapped down prior to trading on Tuesday following a dissappointing earnings announcement. The stock had previously closed at $36.68, but opened at $33.70. Kforce shares last traded at $36.3070, with a volume of 39,129 shares traded.

The business services provider reported $0.43 EPS for the quarter, missing analysts’ consensus estimates of $0.47 by ($0.04). The company had revenue of $332.02 million for the quarter, compared to analyst estimates of $328.79 million. Kforce had a return on equity of 30.34% and a net margin of 3.59%.The business’s quarterly revenue was down 3.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.60 earnings per share. Kforce has set its Q1 2026 guidance at 0.370-0.450 EPS.

Kforce Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 20th. Investors of record on Friday, March 6th will be paid a dividend of $0.40 per share. The ex-dividend date is Friday, March 6th. This is an increase from Kforce’s previous quarterly dividend of $0.39. This represents a $1.60 dividend on an annualized basis and a dividend yield of 4.5%. Kforce’s payout ratio is presently 68.72%.

Key Stories Impacting Kforce

Here are the key news stories impacting Kforce this week:

• Positive Sentiment: Kforce raised its quarterly dividend to $0.40 (annualized yield ~4.7%), a 2.6% bump from the prior payout — supportive for income investors ahead of the March ex‑dividend date.
• Positive Sentiment: Management signaled operating‑margin improvement in 2026 driven by organizational refinements and cost efficiencies, which could help margins recover after Q4 pressure. Kforce signals operating margin improvement
• Neutral Sentiment: Revenue (reported $332.0M) was roughly in line with expectations even as it declined ~3.4% y/y; consulting solutions helped offset margin headwinds. Business Wire release
• Neutral Sentiment: Management set Q1 2026 EPS guidance at $0.37–$0.45; the range gives some visibility but is wide, so near‑term clarity will depend on upcoming quarterly cadence.
• Neutral Sentiment: Analyst coverage and price targets remain mixed (median target recently ~$36.25), limiting a strong near‑term directional bias. QuiverQuant summary
• Negative Sentiment: Reported EPS missed consensus: Kforce posted $0.43 (consensus ~$0.47) and showed meaningful y/y declines in operating profit and net income — the core earnings miss is the primary driver of the selloff. Zacks: KFRC lags Q4 earnings estimates
• Negative Sentiment: Market reaction was strong: earlier headlines noted sharp intraday drops and elevated volume as investors digested the miss and margin weakness. Why KFRC shares are plunging
• Negative Sentiment: Institutional repositioning and recent hedge‑fund reweights noted in data summaries may add selling pressure while investors await clearer margin recovery. QuiverQuant institutional activity

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on KFRC. UBS Group lifted their price target on Kforce from $34.50 to $39.00 and gave the stock a “neutral” rating in a report on Tuesday. Zacks Research lowered Kforce from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, January 28th. Finally, Truist Financial boosted their target price on Kforce from $35.00 to $38.00 and gave the stock a “hold” rating in a research note on Tuesday, January 27th. Three investment analysts have rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $38.50.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Tributary Capital Management LLC boosted its holdings in shares of Kforce by 93.0% in the third quarter. Tributary Capital Management LLC now owns 827,046 shares of the business services provider’s stock valued at $24,795,000 after acquiring an additional 398,471 shares during the period. New South Capital Management Inc. raised its position in Kforce by 18.1% in the 3rd quarter. New South Capital Management Inc. now owns 709,550 shares of the business services provider’s stock valued at $21,272,000 after purchasing an additional 108,507 shares during the last quarter. Geode Capital Management LLC raised its position in Kforce by 0.6% in the 2nd quarter. Geode Capital Management LLC now owns 511,072 shares of the business services provider’s stock valued at $21,021,000 after purchasing an additional 3,173 shares during the last quarter. Deprince Race & Zollo Inc. boosted its stake in Kforce by 30.7% during the 4th quarter. Deprince Race & Zollo Inc. now owns 499,733 shares of the business services provider’s stock worth $15,452,000 after purchasing an additional 117,290 shares during the period. Finally, Jacobs Levy Equity Management Inc. grew its position in Kforce by 144.5% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 411,706 shares of the business services provider’s stock worth $12,343,000 after purchasing an additional 243,303 shares during the last quarter. Institutional investors and hedge funds own 92.77% of the company’s stock.

Kforce Price Performance

The company has a debt-to-equity ratio of 0.16, a quick ratio of 2.06 and a current ratio of 2.06. The company has a market capitalization of $639.00 million, a PE ratio of 13.14 and a beta of 0.55. The company’s 50-day simple moving average is $32.09 and its 200-day simple moving average is $31.64.

Kforce Company Profile

Kforce Inc is a professional staffing services firm headquartered in Tampa, Florida, trading on NASDAQ under the symbol KFRC. The company specializes in connecting organizations with skilled talent in technology, finance and accounting, and related business functions. Through a nationwide network of offices, Kforce partners with clients across industries to deliver both flexible contract staffing and direct hire placement solutions.

Kforce’s core offerings include temporary staffing, permanent placement, and project-based consulting engagements.