Heidrick And Struggles Profit Beats Street View
Illinois-based leadership advisory firm, Heidrick and Struggles International Inc, (HSII) Monday reported a jump in first-quarter profit, which also trumped estimates, driven by the performance of its executive search division.
First-quarter net income was $14.8 million or $0.74 per share, up from $8.6 million or $0.44 per share in the same quarter last year. Excluding special items, the net income rose to $17.4 million or $0.86 per share, compared to $8.6 million or $0.44 per share last year. Four analysts, polled by Thomson Reuters, had a consensus earnings estimate of $0.53 per share.
Revenues for the quarter improved to $193.7 million from $171.5 million last year. Four analysts had a consensus revenue estimate of $163.47 million.
The revenue growth was primarily boosted by a $24.2 million increase in Executive Search, partially mitigated by a small drop in Heidrick Consulting. The company reports there being 373 Executive Searches consultants at an average of $1.9 million per client, while last year there were 396 clients with an average of $1.6 million.
“Our results reflect a strong rebound from the global downturn. Record net revenue in the first quarter marked a double-digit improvement both sequentially and year over year, driven by broad-based strength across all businesses and geographies,” stated CEO Krishnan Rajagopalan.
Looking forward to the second quarter, the company expects revenues of $215 million to $225 million, while analysts currently expect to be $165.59 million.
The board of directors of the company agreed to pay a dividend of $0.15 per share on May 21 2021 to the shareholders on record on May 7, 2021.
The shares dropped 1.8% or $0.69 to $37.73 at the bell after opening at $38.57 in the morning. The shares are presently trading at $41.99, up by 11.29% or $4.26 per share.
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