There's been a notable change in appetite for Kforce Inc. (NYSE:KFRC) shares in the week since its first-quarter report, with the stock down 14% to US$38.20. Revenues of US$330m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$0.45, missing estimates by 3.3%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Our free stock report includes 2 warning signs investors should be aware of before investing in Kforce. Read for free now.NYSE:KFRC Earnings and Revenue Growth May 1st 2025

Taking into account the latest results, the five analysts covering Kforce provided consensus estimates of US$1.33b revenue in 2025, which would reflect a measurable 4.1% decline over the past 12 months. Statutory earnings per share are forecast to descend 15% to US$2.21 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.37b and earnings per share (EPS) of US$2.57 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

View our latest analysis for Kforce

The consensus price target fell 17% to US$50.25, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kforce at US$57.00 per share, while the most bearish prices it at US$40.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.4% by the end of 2025. This indicates a significant reduction from annual growth of 0.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kforce is expected to lag the wider industry.

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The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kforce's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kforce going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Kforce has  2 warning signs  we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.