Heidrick & Struggles International Earnings: Here’s Why Investors are Ambivalent Now

Heidrick & Struggles International Inc. (NASDAQ:HSII) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Heidrick & Struggles International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.07 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 4.47% to $107.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Heidrick & Struggles International Inc. reported adjusted EPS loss of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.03. It beat the average revenue estimate of $103.95 million.

Quoting Management: L. Kevin Kelly, Chief Executive Officer, said, “Despite continuing challenges in Europe, where first quarter results were negatively impacted by a long, slow economic recovery and higher than expected consultant turnover, we have seen encouraging results from a number of offices and industry practices in our Americas and Asia Pacific regions. In addition, we are also pleased with the early integration of Senn Delaney into Heidrick & Struggles. Expanding our service offerings to include culture shaping has strengthened our integrated leadership services platform and is a key differentiating feature for Heidrick & Struggles that has already been instrumental in several significant business wins.”

Key Stats (on next page)…

Revenue decreased 1.25% from $108.66 million in the previous quarter. EPS decreased to $-0.07 in the quarter versus EPS of $0.08 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 $0.23 to a profit $0.16. For the current year, the average estimate has moved down from a profit of $0.82 to a profit of $0.57 over the last ninety days.

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