Heidrick & Struggles International Stock Rises After-Hours On Upbeat Q4 Profit, Retail Yet To Take Notice

Heidrick & Struggles International (HSII) stock gained 5.5% on Monday after the company’s fourth-quarter earnings topped Wall Street’s estimates.

The management consultancy firm reported a fourth-quarter adjusted net income of $22.9 million, $1.08 per share, while analysts expected it to post $0.63 per share, according to FinChat data.

The company, which also helps search executives for leadership roles, said its net revenue rose 9.1% to $276.2 million compared to a year earlier. Wall Street was expecting the company to post $263.3 million in revenue.

The Chicago-based company posted a net loss of $15 million for the quarter, which included a non-cash goodwill impairment charge of $43.3 million related to its On-Demand Talent segment and an earnout fair value reduction of $0.8 million related to the Heidrick Consulting segment.

The company’s Executive Search segment net revenue rose 10.1% to $202.5 million compared to last year, aided by an 11.1% increase in revenue in the Americas and an 8.1% rise in Europe.

Its search confirmations in the segment rose 1% compared to last year.

Heidrick & Struggles said its On-Demand Talent segment net revenue rose 3% to $42.3 million compared to the same period last year.

The company forecasted first quarter net revenue between $263 million and $273 million. Analysts on average expect it to report $264.4 million in revenue.

Retail sentiment on Stocktwits remained in the ‘bearish’ (26/100) territory, while retail chatter was ‘extremely low.’

Over the past year, Heidrick & Struggles International shares have gained nearly 15%.

Also See: Dave Stock Gains After-Hours On Q4 Profit Beat, Retail Mood Brightens

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