Administaff ASF 3Q 2009 Earnings

For the third quarter 2009, the company reported net income of $5.8 million, or $0.23 earnings per diluted share. For the nine months ended September 30, 2009, the company reported net income of $19.4 million and earnings per diluted share of $0.77

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Administaff beat EPS by .01, while revenues were light of consensus. Administaff is in a bad segment of the economy. With credit continued to be constrained and health costs continues to pressure employers, Administaff will have to pray that the economy can right itself in a positive direction.

I remain cautious on the business services sector till there is a defined upturn in employment demand.