Barrington analyst Kevin Steinke reiterated a Buy rating on Heidrick & Struggles (NASDAQ: HSII) today and set a price target of $45. The company’s shares opened today at $41.55, close to its 52-week high of $44.
Steinke noted:
“We estimate that constant-currency organic growth in of revenue) was approximately 20%, a significant acceleration from the high-single digits in Q1/18. Heidrick Consulting revenue (9% of total) was down slightly YOY (due largely to a headwind from ASC 606 revenue recognition implementation) but increased 16% sequentially, which is an encouraging result given the recent repositioning and launch of this business in Q1/18. Revenue growth was coupled with solid margin expansion for the second consecutive quarter, as adjusted EBITDA margin improved 200 bps YOY to 12.9%, better than our estimate of 12.4%. Margin benefited from the restructuring plan announced on January 5, expense leverage from revenue growth, and tight cost management.”
According to TipRanks.com, Steinke is a 4-star analyst with an average return of 7.3% and a 70.1% success rate. Steinke covers the Services sector, focusing on stocks such as Cross Country Healthcare, Echo Global Logistics, and Navigant Consulting.
Heidrick & Struggles has an analyst consensus of Moderate Buy, with a price target consensus of $42.50.
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Based on Heidrick & Struggles’ latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $11.46 million. In comparison, last year the company had a GAAP net loss of $18.25 million.
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Heidrick & Struggles International, Inc. engages in provision of leadership consulting, culture shaping and senior-level executive search services. It offers its clients build leadership teams through facilitating the recruitment, management and deployment of senior executives. The company was founded in 1999 and is headquartered in Chicago, IL.
