After reporting strong earnings last night On Assignment (ASGN) is up 10% today and will likely move higher.

Revenue rose an impressive 35% and beat estimates by $50 million. Even without the contribution from recent acquisitions, revenue increased 18%. Earnings of $.66 beat estimates by 6 cents and guidance for the second quarter is higher than expected. Management expects second quarter revenue to jump 23% to $.79. 

On Assignment’s June 2015 purchase of Creative Circle positions it perfectly to serve the wave of demand for digital technology workers in the market. Its scale and depth of IT talent makes it the go-to shop for temporary and long term assignments. 

Adding the $.06 beat from this quarter and the $.02 increase in second quarter estimates brings the annual estimate up to $3.18, a 21% increase. Assumptions for only 10% growth in fiscal 2017 look light considering the earnings just reported. Our current target of $48 will likely be raised after estimate revisions.