BG Staffing, Inc. (BGSF - Free Report) posted yet another record quarter as the labor market remains tight. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by the double digits in both 2018 and 2019.
BG Staffing is a small cap staffing company headquartered in Plano, Texas, that is primarily a professional temporary staffing platform. It specializes in technology, accounting, light industrial, such as forklift drivers, and multifamily real estate staffing including front office staff for leasing offices and onsite engineers at apartment buildings.
In 2017, it was the 60th largest staffing company in the United States.
Another Beat in the Second Quarter
On July 27, BG Staffing reported its second quarter results and surprised on the Zacks Consensus Estimate by a whopping 24 cents. Earnings were $0.54 versus the consensus of $0.30.
It was the 7th consecutive earnings beat in a row.
Revenue rose 3.2% year-over-year to $70.9 million from $68.7 million.
Gross profit jumped 11.4%.
The company said the multifamily segment was especially strong.
Estimates Rise for 2018 and 2019
The analysts are already bullish with 1 estimate moving higher since the earnings report.
The 2018 Zacks Consensus Estimate has jumped to $1.49 from $1.36 over the last week. That's earnings growth of 47.5% as it only made $1.01 in 2017.
The Zacks Consensus Estimate for 2019 also rose to $1.82 from $1.70 since the report. That's another 22.2% earnings growth.
Shares Soar to New Highs
Shares of BG Staffing have been on a tear in 2018, gaining 62.7%.
Yet the stock still has attractive valuations with a forward P/E of 17.8.
Shareholders are also rewarded with one of the largest dividends in the staffing industry, currently yielding 4.5%.
For investors looking for a way to play the tight job market, BG Staffing is one you should have on your short list.
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