Economic conditions — including higher interest rates, inflation and worries over a potential recession — impacted earnings at GEE Group Inc. (NYSEAMERICAN:JOB), the company reported Dec. 18. Revenue fell 17.5% year over year in GEE Group’s fiscal fourth quarter ended Sept. 30.
Still, 2023 revenue was on par with other staffing firms, the company reported. It also noted a record performance in 2022.
“Our professional IT contract services markets had solid performance and turned in low single-digit growth in fiscal 2023 despite an industrywide slowdown,” GEE Group Chairman and CEO Derek Dewan said in a press release. “Despite current and potential headwinds, we continue to express the same cautious optimism regarding growth in earnings and free cash flow for fiscal 2024 based on what we are seeing so far.”
Dewan also said the company engaged an investment banking firm to help in evaluating GEE Group’s strategic alternatives, including capital allocation strategy, mergers and acquisitions.
“The flexible, on-demand workforce needs of corporate America remain strong and are growing,” he said. “There continues to be dynamic changes in how America works that will benefit our company and the staffing industry as a whole.”
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Share price
Shares in GEE Group were down 11.79% to $0.4795 as of noon Eastern time; they were 34.3% above their 52-week low.