Heidrick & Struggles International up on 44% jump in Q3 profit
Heidrick & Struggles International, Inc. (Nasdaq: HSII) shares are up after the executive search and consulting firm reported third-quarter net income of $16.1 million, or $0.84 per share, above analyst estimates of $0.69 per share and up 44% from $11.2 million, or $0.60 per share, a year earlier.
“Our performance is a validation of our strategy and of the operational improvements we have made over the last several years,” CEO Kevin Kelly said in a statement. “It reflects the hard work of our employees, who have been committed to revenue growth and improved profitability.”
The firm’s quarterly revenue for the three months ended Sept. 30 totaled $169.6 million, above Wall Street projections of $145.5 million and compared with $130.9 million during the same period of 2006. The Chicago-based company’s quarterly operating expenses rose 27% to $144.2 million, from $113.3 million a year earlier.
Heidrick & Struggles raised its fiscal 2007 revenue guidance to a range of $600 million to $610 million, above views of $591 million and from guidance of $580 million to $595 million.
"Increasing our net revenue guidance for 2007 is in line with our positive outlook for Heidrick & Struggles,” Kelly said. “Although uneven quarterly results are inherent to our business, we are encouraged by the long-term prospects for our growth in the executive search industry. Worldwide demand for senior-level management talent will be influenced by secular drivers such as retiring baby boomers and continued corporate globalization.”
In morning trading, HSII shares are up 10.63%, or $4.22, at $43.93. Over the last 52 weeks, shares have ranged from $34.92 to $55.22.
