分组1 - Harte-Hanks reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.10 per share, and showing an increase from $0.08 per share a year ago, representing a 30% earnings surprise [1] - The company achieved revenues of $47.63 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.91% and up from $47.12 million year-over-year [2] - Over the last four quarters, Harte-Hanks has surpassed consensus EPS estimates three times and has also topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed the market, losing about 0.7% since the beginning of the year compared to the S&P 500's gain of 25.5% [3] - The current consensus EPS estimate for the coming quarter is $0.15 on revenues of $50.1 million, while the estimate for the current fiscal year is -$3.43 on revenues of $187.78 million [7] - The Advertising and Marketing industry, to which Harte-Hanks belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Total revenues for Q3 2024 were $47.6 million, an increase of 1.1% compared to $47.1 million in Q3 2023[3] - Operating income was $1.9 million, down from $2.9 million in the same quarter of the prior year[3] - Net income for the quarter was $0.1 million, or $0.02 per basic and diluted share, compared to net income of $0.6 million, or $0.09 per basic and $0.08 per diluted share, in the prior year quarter[9] - EBITDA for Q3 2024 was $2.9 million, compared to $3.9 million in the same period in the prior year[3] - The company reported a comprehensive income of $236,000 for Q3 2024, compared to $562,000 in Q3 2023[24] - Adjusted EBITDA for Q3 2024 was $4.14 million, slightly down from $4.19 million in Q3 2023[28] - The company’s total operating income for the three months ended September 30, 2024, was $1,898,000, compared to $2,914,000 in the same period of 2023, a decline of 34.8%[29] Segment Performance - Customer Care segment revenue was $13.1 million, an increase of 10.4% year-over-year, with EBITDA totaling $2.5 million, up 40.5%[4] - Sales Services segment revenue was $4.2 million, an increase of 94.1% year-over-year, with EBITDA totaling $0.7 million, up 237%[5] - Fulfillment & Logistics Services segment revenue was $21.3 million, a decrease of 5.4% year-over-year, with EBITDA declining 53.1%[6] - Marketing Services segment revenue was $9.1 million, a decrease of 14.6% year-over-year, while EBITDA increased to $2.1 million from $1.5 million[7] - The contribution margin for the Marketing Services segment was $2,892,000, down from $2,221,000 in the prior year, indicating a decline of 30.2%[29] - The contribution margin for the Fulfillment & Logistics segment was $2,115,000, down from $3,535,000 in the prior year, a decrease of 40.2%[29] - Operating income for the Fulfillment & Logistics segment was $1,074,000, down from $2,606,000 in the prior year, a decline of 58.8%[29] Expenses and Liabilities - Total operating expenses for Q3 2024 were $45.73 million, compared to $44.21 million in Q3 2023, an increase of 3.4%[23] - Segment operating expenses for Customer Care increased to $9,995,000 in Q3 2024 from $9,380,000 in Q3 2023, an increase of 6.5%[29] - The overall segment operating expenses for the company increased to $44,694,000 in Q3 2024 from $43,253,000 in Q3 2023, an increase of 3.3%[29] - The company reported a loss of $5,195,000 in unallocated corporate expenses for the three months ended September 30, 2024, compared to a loss of $2,874,000 in the same period of 2023[29] Cash and Assets - The company ended the quarter with $5.9 million in cash and cash equivalents and $24.0 million of capacity on its credit line[10] - Cash and cash equivalents decreased to $5.94 million as of September 30, 2024, from $18.36 million at the end of 2023[25] - Total assets decreased to $108.13 million as of September 30, 2024, down from $122.76 million at the end of 2023[25] - Total liabilities decreased to $87.08 million as of September 30, 2024, from $102.90 million at the end of 2023[26] Future Outlook - The company expects low to mid-single-digit revenue contraction in Q4 2024 due to changes in customer programs[2]

Revenue Performance - Revenue increased by $0.5 million, or 1.1%, to $47.6 million for the three months ended September 30, 2024, compared to the same period in 2023[109]. - For the nine months ended September 30, 2024, revenue decreased by $3.9 million, or 2.7%, to $138.1 million, attributed to decreased revenue in three operating segments[116]. - Marketing Services segment revenue decreased by $1.5 million, or 14.6%, for the three months ended September 30, 2024, due to customer turnover and reduced client spending[124]. - Customer Care segment revenue increased by $1.2 million, or 10.4%, for the three months ended September 30, 2024, driven by specific program fluctuations[126]. - Sales Services segment revenue increased by $2.0 million, or 94.1%, for the three months ended September 30, 2024, primarily due to increased work from a large fintech customer[129]. - Fulfillment & Logistics Services segment revenue decreased by $1.2 million, or 5.4%, for the three months ended September 30, 2024, due to lower volume from existing customers[131]. Operating Expenses - Operating expenses rose by $1.5 million, or 3.5%, to $45.7 million for the three months ended September 30, 2024, primarily due to higher labor costs[110]. - Operating expenses for the nine months ended September 30, 2024, were $134.5 million, a decrease of $1.9 million, or 1.4%, compared to the same period in 2023[117]. - Labor expenses decreased by $3.7 million, or 5.0%, for the nine months ended September 30, 2024, due to lower labor costs associated with reduced revenue[118]. - Fulfillment & Logistics Services segment operating income decreased by $1.5 million, or 58.8%, for the three months ended September 30, 2024, primarily due to revenue mix and higher expenses[131]. Net Income and Other Financial Metrics - The company recorded a net income of $0.1 million for the three months ended September 30, 2024, compared to a net income of $0.6 million in the prior year[112]. - Other expense, net, for the nine months ended September 30, 2024, was $39.7 million, a significant increase from $3.6 million in the prior year, primarily due to pension termination charges[121]. - The effective tax rate for the nine months ended September 30, 2024, was 22.8%, a decrease from 79.9% in the same period of 2023[122]. Cash Flow and Liquidity - Net cash used in operating activities was $7.0 million for the nine months ended September 30, 2024, compared to net cash provided of $6.1 million for the same period in 2023[136]. - The company had cash and cash equivalents of $5.9 million as of September 30, 2024, down from $18.4 million at December 31, 2023[134]. - The company has the ability to borrow an additional $24.0 million under its Credit Facility as of September 30, 2024[145]. Strategic Initiatives - Project Elevate aims to achieve $6 million in savings for 2024 and a total of $16 million by the end of 2025[104]. Corporate Governance and Compliance - The CEO and CFO evaluated the effectiveness of disclosure controls and procedures as of September 30, 2024, concluding they were effective at the "reasonable assurance" level[150]. - There were no changes in internal controls over financial reporting during the most recent fiscal quarter that materially affected the internal control[151]. - Information regarding legal proceedings is detailed in Note L, Litigation and Contingencies, in the Notes to Condensed Consolidated Financial Statements[152]. Dividends - The company did not pay any dividends in the three months ended September 30, 2024, and 2023[145].

Company Performance - Harte-Hanks closed at $6.98, showing no change from the previous session, lagging behind the S&P 500's daily gain of 0.38% [1] - The company's shares experienced a loss of 5.55% over the previous month, underperforming the Business Services sector's gain of 11.43% and the S&P 500's gain of 4.9% [1] Upcoming Earnings - Harte-Hanks is set to disclose its earnings on November 14, 2024, with analysts expecting earnings of $0.10 per share, reflecting a year-over-year growth of 25% [2] - The consensus estimate for revenue is $47.2 million, indicating a 0.17% growth compared to the same quarter of the previous year [2] Yearly Forecast - For the entire year, Zacks Consensus Estimates forecast earnings of -$3.43 per share and revenue of $187.78 million, representing changes of -936.59% and -1.94% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Harte-Hanks are important as they reflect short-term business trends, with upward revisions indicating analysts' positivity towards the company's operations [4] - Adjustments in estimates are directly associated with imminent stock price performance, which investors can leverage using the Zacks Rank [5] Zacks Rank - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown an impressive track record, with 1 stocks generating an average annual return of +25% since 1988 [6] - Currently, Harte-Hanks holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [6] Industry Context - The Advertising and Marketing industry, part of the Business Services sector, has a Zacks Industry Rank of 151, placing it in the bottom 41% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Harte-Hanks (HHS) closed at $7.44, marking a +1.64% move from the prior day, outperforming the S&P 500 which gained 0.42% [1] - The stock has fallen by 2.79% in the past month, lagging behind the Business Services sector's gain of 4.34% and the S&P 500's gain of 2.06% [1] Upcoming Earnings - The upcoming earnings disclosure is highly anticipated, with projected earnings per share (EPS) of $0.10, reflecting a 25% increase from the same quarter last year [2] - Revenue is forecasted to be $47.2 million, indicating a 0.17% growth compared to the corresponding quarter of the prior year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of -$3.43 per share and revenue of $187.78 million, representing changes of -936.59% and -1.94% respectively from the prior year [3] - Recent changes to analyst estimates indicate a dynamic nature of near-term business trends, with positive revisions suggesting optimism about the company's outlook [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Harte-Hanks at 3 (Hold) [5] - The consensus EPS projection has remained stagnant over the past 30 days [5] Industry Context - The Advertising and Marketing industry, part of the Business Services sector, holds a Zacks Industry Rank of 73, placing it in the top 29% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]

Company Performance - Harte-Hanks (HHS) closed at $7.54, with a daily increase of +0.94%, outperforming the S&P 500's gain of 0.28% [1] - Over the past month, Harte-Hanks shares have decreased by 0.93%, underperforming the Business Services sector's gain of 6.6% and the S&P 500's gain of 2% [1] Earnings Expectations - Analysts expect Harte-Hanks to report earnings of $0.10 per share, reflecting a year-over-year growth of 25% [2] - The consensus estimate for quarterly revenue is $48.45 million, which is an increase of 2.82% from the previous year [2] Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of -$3.43 per share and revenue of $190.94 million, indicating changes of -936.59% and -0.29% respectively from the prior year [3] - Recent adjustments to analyst estimates are important as they reflect short-term business trends, with positive revisions indicating analyst optimism [3] Zacks Rank and Industry Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently rates Harte-Hanks at 3 (Hold) [5] - The Advertising and Marketing industry, part of the Business Services sector, holds a Zacks Industry Rank of 47, placing it in the top 19% of over 250 industries [6]

Financial Data and Key Metrics Changes - Second quarter revenues were $45 million, down by 5.7% compared to $47.8 million for the same quarter in 2023 [23] - Operating income in Q2 2024 was $1.4 million compared to $1.7 million in Q2 2023, with adjusted operating income at $2.5 million versus $3.4 million [24] - The second quarter of 2024 had an EBITDA of $2.4 million compared to $2.7 million in the same period in 2023 [25] - A pension charge of $38.2 million was recorded, resulting in a net loss of $27.8 million for the quarter, while without this charge, the company would have had a net income of $300,000 [27] Business Line Data and Key Metrics Changes - Customer Care segment revenues were $12.4 million in Q2 2024, down from $14.9 million in the same quarter prior year [23] - Sales Services increased to $4.4 million compared to $2.3 million in Q2 2023, driven by a large fintech client [23] - Marketing Services segment revenues fell to $7.7 million in Q2 2024 from $10.9 million in the prior year due to customer budget reductions [24] - Fulfillment & Logistics revenues increased to $20.5 million in Q2 2024 from $19.6 million in the prior year, attributed to new and expanded programs with existing customers [24] Market Data and Key Metrics Changes - The company is focusing on expanding partnerships and enhancing its international sales presence, particularly in Europe, which is seen as a growth driver for 2025 [39][42] - The sales pipeline is reported to be growing and is well ahead of the previous year, indicating a healthy indicator for revenue improvement [10] Company Strategy and Development Direction - The company is undergoing a transformation with a focus on revitalizing its sales and marketing organization, including the centralization of sales staff and the introduction of new leadership [6][12] - Project Elevate aims to lower operating costs while improving workflows and resource allocation, with a comprehensive two-year roadmap developed [13] - Strategic investments are being made in the Fulfillment segment, including a migration to a best-in-class warehouse and order technology suite [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming challenges posed by an outdated approach to scaling and is optimistic about the potential for organic growth despite economic concerns [35] - The company is positioned well for the second half of the year, particularly in the fulfillment business, with good visibility into upcoming projects [36] Other Important Information - The company has successfully terminated Pension Plan I, which relieved it of related liabilities [28] - The appointment of a Chief Customer and Data Officer is expected to enhance customer-centric initiatives and drive growth through data and analytics [20][22] Q&A Session Summary Question: When will the new sales structure start generating revenue? - Management indicated that the sales pipeline is strong and improvements in conversion rates are expected as the year progresses [31] Question: How will the company fare in a weakening economy? - Management acknowledged the potential impact of a slowing economy but emphasized the untapped potential and confidence in organic growth opportunities [34] Question: Will there be sequential quarterly improvement in revenues? - Management stated it is too early to predict specific revenue growth for Q3 or Q4 but expressed optimism for a stronger outlook in Q4 [37] Question: What is the strategy for the Marketing Services segment? - Management acknowledged past weaknesses but expressed optimism for recovery and plans to bolster sales support in 2025 [39] Question: What are the international expansion plans? - Management highlighted opportunities to expand U.S.-based clients into Europe and emphasized the potential for growth in that market [42]

Harte-Hanks (HHS) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.06 per share. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 433.33%. A quarter ago, it was expected that this marketing company would post a loss of $0.05 per share when it actually produced earnings of $0.10, delivering a surprise of 300%. Over the last four quarters, the compa ...

Harte Hanks (HHS) is scheduled to release its second-quarter 2024 results on Aug 8, after market close. HHS delivered an earnings surprise of 300% in the first quarter of 2024. Q2 Expectations The Zacks Consensus Estimate for the company's revenues is pegged at $46.6 million, indicating a 2.4% decrease from the year-ago quarter's actual. The top line is likely to have declined due to a fall in revenues in the Marketing Service, and Fulfillment and Logistics segments. We expect revenues from the Customer Car ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Harte-Hanks (HHS) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 8, 2024, might help the stock move higher if these key numbers are better than expectat ...