Huron Consulting (HURN) shares soared 4% in the last trading session to close at $172.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.7% loss over the past four weeks.The stock is benefiting from the company’s capital returns through share buybacks and its expansion of service offerings, including acquisitions, which enhance long-term growth visibility and investor appeal.This consulting company is expected to post quarterl ...

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Investors might want to bet on Huron Consulting (HURN) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ...

Core Insights - Huron has acquired the payor consulting services division of AXIOM Systems, enhancing its capabilities in the payor ecosystem [1] Company Summary - The acquisition allows Huron to expand its service offerings in healthcare information technology, particularly in core administration systems and digital transformation for payors and payor-provider organizations [1] - Mark Hussey, the chief executive, expressed enthusiasm about integrating AXIOM's consulting services team into Huron [1]

Core Insights - Ronald Dail, Chief Operating Officer of Huron Consulting Group, sold 7,991 shares for approximately $1.4 million, representing about 20.5% of his direct holdings at the time of the transaction [1][3][10] Transaction Summary - The transaction involved the sale of 7,991 shares valued at ~$1.4 million, with post-transaction holdings of 31,017 shares worth ~$5.1 million [2] - The sale was executed at a weighted average price of $169.56 per share, while the stock closed at $164.44 on October 31 [5] Historical Context - This sale is the largest executed by Dail in the past year, significantly exceeding previous sales of 1,421 shares and 600 shares [4] - Cumulatively, Dail's net sales in 2025 have reduced his direct holdings by 24.4% since February [6] Company Overview - Huron Consulting Group employs 6,405 individuals and reported a revenue of $1.6 billion with a net income of $108.4 million [7] - The company experienced a 42.1% price change over the past year, indicating strong market performance [7] Business Strategy - Huron Consulting Group focuses on high-value consulting across healthcare, education, and business advisory sectors, emphasizing technology-enabled solutions and deep industry expertise [8][9] - The company generates revenue through advisory and managed services aimed at enhancing operational efficiency and digital enablement [9] Recent Performance - Following the third-quarter earnings release, Huron's revenue before reimbursable expenses increased by 16.8% year-over-year to $432.4 million, with earnings per share growing over 16% to $0.24 [11] - Management projects revenue for the year to be between $1.65 billion and $1.67 billion, reflecting an annual growth rate of 11.4% at the midpoint [12]

Core Insights - Huron Consulting (HURN) reported quarterly earnings of $2.1 per share, exceeding the Zacks Consensus Estimate of $1.86 per share, and showing an increase from $1.68 per share a year ago, resulting in an earnings surprise of +12.90% [1] - The company achieved revenues of $432.36 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.94% and up from $370.05 million year-over-year [2] - Huron Consulting's stock has increased approximately 23.6% since the beginning of the year, outperforming the S&P 500's gain of 16.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.09, with expected revenues of $436.26 million, and for the current fiscal year, the consensus EPS estimate is $7.52 on revenues of $1.65 billion [7] - The estimate revisions trend for Huron Consulting was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Consulting Services industry, to which Huron Consulting belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting that the industry's outlook may impact stock performance [8] - CRA International (CRAI), another company in the same industry, is expected to report quarterly earnings of $1.80 per share, reflecting a year-over-year change of +1.7%, with revenues anticipated to be $179.06 million, up 6.7% from the previous year [9][10]

Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][20] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [21] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [22] - Adjusted net income was $37.4 million or $2.10 per diluted share in Q3 2025, a 25% increase over Q3 2024 [23] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, with organic growth of 19% excluding recent acquisitions [4][24] - Education segment RVR grew 7% year-over-year, driven by strong demand for strategy and operations, research, and digital offerings [9][10] - Commercial segment RVR grew 27% year-over-year, driven by acquisitions and continued organic growth [12][25] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with a record RVR of $219.5 million [23] - The education segment accounted for 30% of total company RVR, with a record RVR of $129.4 million [25] - The commercial segment generated 19% of total company RVR, with a record RVR of $83.4 million [26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [8][16] - The strategy includes integrating commercial offerings to enhance the go-to-market strategy and drive above-average growth [15][16] - The company is focused on delivering demonstrable ROI for clients, which is critical for maintaining strong client relationships and repeat business [34] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion-$1.67 billion and adjusted non-GAAP EPS of $7.50-$7.70 [16][30] - Management highlighted the importance of a strong culture in attracting and retaining talent, which supports growth [49][50] Other Important Information - The company closed on acquisitions of Treliant and Wilson Perumal, contributing to growth in the commercial segment [19][14] - The effective income tax rate for Q3 2025 was 28.7%, with an expected full-year rate of 23%-25% [22] - The company repurchased approximately 147,000 shares in Q3 2025, totaling $152.5 million year-to-date [30] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management noted strong market conditions driven by margin pressures, leading to increased demand for performance improvement services [33][34] Question: Outlook for 2026 - Management indicated confidence in the multi-year growth model discussed at the investor day, with potential for higher outcomes based on continued execution [40][41] Question: Demand inflection in commercial segment - Management observed improved sales conversion in financial advisory and strategy offerings, indicating a positive trajectory [44][45] Question: Hiring capabilities for growth - Management expressed confidence in hiring capabilities, supported by a strong culture that attracts talent and reduces attrition [49][50] Question: Customer decision-making in education - Management noted a stable outlook in education, with clients making long-term decisions amidst previous disruptions [51][52] Question: Utilization rates and margin expansion - Management acknowledged lower utilization due to headcount additions but expects improvement as projects ramp up [74][76] Question: AI focus in projects - Management indicated that approximately 15%-20% of total revenue is related to AI projects, with expectations for growth in this area [64][66]

Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][20] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [21] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [22] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, achieving a record $219.5 million in Q3 2025 [4][24] - Education segment RVR grew 7% year-over-year, reaching $129.4 million in Q3 2025 [9][25] - Commercial segment RVR grew 27% year-over-year, achieving $83.4 million in Q3 2025 [12][26] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with an organic growth rate of 18.6% [23][24] - The education segment accounted for 30% of total company RVR, with a 25.7% operating income margin [25] - The commercial segment generated 19% of total company RVR, with a decline in operating income margin to 16.4% [26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [8][12] - The strategy includes integrating commercial offerings to enhance the go-to-market strategy and drive above-average growth [15][16] - The company is focused on delivering demonstrable ROI for clients, which is critical for maintaining competitive advantage [34] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion to $1.67 billion, affirming adjusted EBITDA guidance [16][30] - Management highlighted the importance of a strong culture in attracting and retaining talent, which supports growth [49][50] Other Important Information - The company closed on acquisitions of Treliant and Wilson Perumal & Company, contributing to growth in the commercial segment [19][14] - The effective income tax rate for Q3 2025 was 28.7%, with an expected full-year rate of 23% to 25% [22] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management noted strong market conditions driven by margin pressures, leading to increased demand for performance improvement services [33][34] Question: Outlook for 2026 - Management indicated confidence in the multi-year growth model discussed at the investor day, with continued execution expected to drive growth [41] Question: Demand in commercial segment - Management observed an inflection point in demand for strategy and financial advisory services, contributing to improved sales conversion [44][45] Question: Hiring capabilities - Management expressed confidence in hiring capabilities, attributing low attrition rates to a strong company culture [49][50] Question: AI focus in projects - Approximately 15% to 20% of total revenue is related to AI projects, with expectations for this to grow as AI becomes integrated into more offerings [64][66]

Financial Data and Key Metrics Changes - Company-wide revenues before reimbursable expenses (RVR) grew 17% in Q3 2025, including 10% organic growth, reflecting strong demand and execution [3][19] - RVR for Q3 2025 was a record $432.4 million, up 16.8% from $370 million in Q3 2024 [19] - Net income for Q3 2025 was $30.4 million or $1.71 per diluted share, compared to $27.1 million or $1.47 per diluted share in Q3 2024 [20] - Adjusted EBITDA was $67.4 million in Q3 2025, or 15.6% of RVR, compared to $54.9 million or 14.8% of RVR in Q3 2024 [21] Business Line Data and Key Metrics Changes - Healthcare segment RVR grew 20% year-over-year, achieving a record $219.5 million in Q3 2025 [4][23] - Education segment RVR grew 7% year-over-year, reaching $129.4 million in Q3 2025 [9][25] - Commercial segment RVR grew 27% year-over-year, reaching $83.4 million in Q3 2025 [12][26] Market Data and Key Metrics Changes - The healthcare segment generated 51% of total company RVR in Q3 2025, with an organic growth rate of 18.6% [23][24] - The education segment accounted for 30% of total company RVR, with strong demand for strategy and operations, research, and digital offerings [10][25] - The commercial segment generated 19% of total company RVR, with growth driven by acquisitions and organic growth in digital business [12][26] Company Strategy and Development Direction - The company aims to leverage AI and automation across its offerings to drive value creation and efficiency [7][8] - Continued focus on integrating commercial offerings to enhance go-to-market strategy and drive above-average growth [15][16] - The company expects to achieve full-year 2025 RVR guidance of $1.65 billion to $1.67 billion, affirming adjusted EBITDA guidance of 14% to 14.5% of RVR [17][31] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand across core end markets, positioning the company well for continued growth in 2026 [4][17] - The healthcare segment is experiencing persistent margin pressures, leading clients to seek comprehensive solutions [6][36] - Management expressed confidence in the ability to sustain accelerated RVR growth and margin expansion despite macroeconomic challenges [17][30] Other Important Information - The company completed several acquisitions, including Eclipse Insights, Treliant, and Wilson Perumal & Company, which contributed to revenue growth [19][12] - The effective income tax rate for Q3 2025 was 28.7%, with expectations for a full-year rate of 23% to 25% [21][30] - Free cash flow for Q3 2025 was $85.3 million, with full-year expectations in the range of $165 million to $185 million [28][30] Q&A Session Summary Question: Insights on performance improvement in healthcare - Management highlighted strong market demand driven by margin pressures and the need for transformation, with a record pipeline and larger project scopes [33][34][39] Question: Outlook for 2026 - Management indicated confidence in continued demand and execution, aligning with previously discussed multi-year targets [42][43] Question: Demand in commercial segment - Management noted an inflection point in demand for strategy and financial advisory services, with improved sales conversion [44][45] Question: Hiring capabilities - Management expressed confidence in hiring capabilities, citing a strong culture that attracts talent and leads to lower attrition rates [47][48] Question: Customer decision-making in education - Management observed a stable outlook in education, with clients making long-term decisions amidst previous disruptions [49] Question: Utilization rates and project absorption - Management confirmed high utilization rates in managed services, with a tight correlation between sales and hiring [50][51] Question: AI focus in projects - Management reported that approximately 15% to 20% of total revenue is related to AI projects, with expectations for growth in this area [60][61]

Growth and Acquisitions - Huron Consulting Group reported strong growth in healthcare and education sectors, aiming to broaden its portfolio to meet evolving market needs[163]. - The company has enhanced its consulting offerings through acquisitions, including Eclipse Insights for revenue cycle solutions in June 2025[166]. - Huron's education segment has been bolstered by acquisitions such as Grenzebach Glier and Associates in March 2024, enhancing its global philanthropy consulting services[167]. - The commercial segment has seen growth through acquisitions like AXIA Consulting in December 2024, expanding its supply chain management offerings[168]. - The acquisition of Treliant added approximately 180 revenue-generating professionals to the Commercial segment in Q3 2025[213]. - Incremental revenues before reimbursable expenses from acquisitions since Q3 2024 amounted to $28.3 million[201]. Financial Performance - Revenues before reimbursable expenses increased by $62.3 million, or 16.8%, to $432.4 million for Q3 2025 from $370.0 million for Q3 2024[201]. - Total revenues for the company reached $441.3 million in Q3 2025, compared to $378.1 million in Q3 2024, representing a 16.7% increase[210]. - Net income increased by $3.3 million, or 12.0%, to $30.4 million for Q3 2025 from $27.1 million in Q3 2024, with diluted earnings per share rising to $1.71 from $1.47[234]. - Adjusted EBITDA increased by $12.6 million, or 22.9%, to $67.4 million, or 15.6% of revenues before reimbursable expenses for Q3 2025 compared to 14.8% for Q3 2024[207]. - Adjusted net income increased by $6.3 million, or 20.3%, to $37.4 million in Q3 2025, with adjusted diluted earnings per share increasing to $2.10 from $1.68[238]. Segment Performance - Healthcare segment revenues before reimbursable expenses increased to $219.5 million in Q3 2025 from $183.1 million in Q3 2024, a growth of 19.9%[210]. - Education segment revenues before reimbursable expenses rose to $129.4 million in Q3 2025, compared to $121.0 million in Q3 2024, reflecting a 6.9% increase[210]. - Commercial segment revenues before reimbursable expenses grew to $83.4 million in Q3 2025, up from $65.9 million in Q3 2024, marking a 26.5% increase[210]. - Healthcare operating income increased by $18.1 million, or 36.5%, with an operating margin of 30.9%[227]. - Education operating income rose by $4.1 million, or 14.0%, with an operating margin of 25.7%[227]. - Commercial operating income decreased by $2.5 million, or 15.4%, with an operating margin of 16.4%[228]. Operational Efficiency - Huron's operational efficiency initiatives aim for margin expansion and strong annual adjusted diluted earnings per share growth[164]. - The utilization rate within the Consulting capability increased to 73.7% in Q3 2025, compared to 73.6% in Q3 2024[202]. - The total number of revenue-generating professionals increased by 15.2% to 5,244 as of September 30, 2025, compared to 4,551 as of September 30, 2024[204]. - The number of Managed Services professionals increased by 55.5% to 2,091 as of September 30, 2025, from 1,345 as of September 30, 2024[204]. Cash Flow and Capital Management - The company maintains a strong balance sheet and cash flow, committed to strategic capital deployment and shareholder returns[164]. - Returned $152.5 million to shareholders in the first nine months of 2025 by repurchasing 1,084,794 shares of common stock[208]. - Cash and cash equivalents increased to $23.9 million as of September 30, 2025, compared to $21.9 million at the end of 2024[263]. - Net cash provided by operating activities increased by $5.3 million to $67.0 million for the nine months ended September 30, 2025, from $61.7 million in 2024[267]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $133.2 million, primarily for business purchases ($107.2 million) and software development ($15.4 million)[270]. Risks and Challenges - The company faces risks related to client retention, market volatility, and integration of acquired businesses, which could impact future performance[161]. - The company has exposure to interest rate risks, with a hypothetical 100 basis point change in interest rates potentially affecting pretax income by $3.6 million annually[297]. - The company does not use derivative instruments for trading or speculative purposes, minimizing market risk exposure[306]. Investments and Impairments - The fair value of the investment in Shorelight Holdings, LLC decreased to $32.8 million as of September 30, 2025, from $62.3 million at December 31, 2024, reflecting a non-cash credit-related impairment charge of $11.1 million[303]. - The equity investment in the hospital-at-home company had a carrying value of $2.4 million as of September 30, 2025, down from $7.4 million at December 31, 2024, after recognizing a total non-cash impairment charge of $5.0 million[304]. - The total cost basis of the investment in Shorelight Holdings, LLC is $40.9 million, indicating a fair value decline of approximately 47.3% over the nine months of 2025[303].