Harte-Hanks Earnings: Here’s Why the Stock is Up Now

Harte-Hanks Inc. (NYSE:HHS) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.53%.

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Harte-Hanks Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.11 in the quarter versus EPS of $0.11 in the year-earlier quarter.

Revenue: Decreased 8.64% to $178.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Harte-Hanks Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $178.9 million.

Quoting Management: Commenting on the first quarter performance, Chairman, President and Chief Executive Officer Larry Franklin said, “While we expected Direct Marketing revenue and operating income to decline, first quarter Direct Marketing revenues and operating income were below our expectations, down 5.1% and 18.1%, respectively. Declines were concentrated primarily in two areas: high-tech business-to-business lead generation and pharmaceutical fulfillment. While, the Direct Marketing transformation is an evolving process, we are excited about our progress and growth opportunities. Shoppers exceeded our expectation with a 1.3% revenue decline and $0.5 million decline in operating income. While it is still early, we are seeing signs of stabilizing performance in Shoppers.”

Key Stats (on next page)…

Revenue increased 0.39% from $177.6 million in the previous quarter. EPS decreased 54.17% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.13 to a profit $0.11. For the current year, the average estimate has moved up from a profit of $0.6 to a profit of $0.63 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)