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

Heidrick & Struggles International Inc. (NASDAQ:HSII) delivered a profit 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. Shares are up 2.54%.

Heidrick & Struggles International Inc. Earnings Cheat Sheet

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

Revenue: Rose 4.55% to $127.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Heidrick & Struggles International Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.16. It beat the average revenue estimate of $114.6 million.

Quoting Management: “Improving conditions for Executive Search in the Americas and in Asia Pacific had a positive impact on our second quarter results while Europe remains in a challenging economic environment,” said Jory Marino, Interim Chief Executive Officer. “Our year-over-year revenue comparisons also reflect the value that Senn Delaney brings to Heidrick & Struggles and reinforce the need to continue to broaden our leadership talent capabilities. We are especially pleased with a 19 percent sequential increase in revenue compared to the 2013 first quarter that was driven by growth in all regions, including the majority of our Executive Search practices and Leadership Consulting. The year-over-year and sequential revenue growth is particularly encouraging considering the smaller consultant base. Recruitment of senior-level consultants with established client relationships, retaining high performing consultants, and managing underperforming consultants will remain a key area of emphasis.”

Key Stats (on next page)…

Revenue increased 18.63% from $107.31 million in the previous quarter. EPS increased to $0.11 in the quarter versus EPS of $-0.07 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.21 to a profit $0.22. For the current year, the average estimate has moved down from a profit of $0.57 to a profit of $0.5 over the last ninety days.

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

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