Last night On Assignment (NYSE: ASGN) missed earnings estimates for the third quarter by 10 cents and gave guidance below expectations for the December quarter. Most bearish is the trend in revenue growth, which had been in the mid-twenties and is now expected to be just 6% in the December quarter.

We are basically flat in the stock since our recommendation. Although the company’s purchase of Creative Circle introduced a team of workers with desirable digital skills, IT firms have been demanding less temporary help, particularly in higher paid positions. A more solid economy seems to be tilting firms towards hiring full time employees versus outsourcing.