Heidrick & Struggles International Misses on Revenue but Beats on EPS

Heidrick & Struggles International (NAS: HSII) reported earnings on April 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Heidrick & Struggles International missed estimates on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share improved.


Margins grew across the board.

Revenue details
Heidrick & Struggles International booked revenue of $106.5 million. The six analysts polled by S&P Capital IQ expected a top line of $110.7 million on the same basis. GAAP reported sales were 7.9% lower than the prior-year quarter's $115.6 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.05. The seven earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. GAAP EPS were $0.04 for Q1 versus -$0.26 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 28.0%, 350 basis points better than the prior-year quarter. Operating margin was 3.3%, 590 basis points better than the prior-year quarter. Net margin was 0.6%, 460 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $130.0 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $519.8 million. The average EPS estimate is $1.18.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 73 members out of 87 rating the stock outperform, and 14 members rating it underperform. Among 31 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Heidrick & Struggles International a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Heidrick & Struggles International is hold, with an average price target of $19.75.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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