When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Huron Consulting (HURN) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Business Services peers, we might be able to answer that question.Huron Consulting is one of 288 companies in the Business Services group. The Business Services group currently sits at #9 within the Zacks Sector Rank. The Za ...

Have you been paying attention to shares of Huron Consulting (HURN) ? Shares have been on the move with the stock up 15.9% over the past month. The stock hit a new 52-week high of $153.77 in the previous session. Huron Consulting has gained 19.3% since the start of the year compared to the 6.5% move for the Zacks Business Services sector and the -1.6% return for the Zacks Consulting Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't ...

Huron Consulting Group Inc. (NASDAQ:HURN) Q4 2024 Earnings Conference Call February 25, 2025 5:00 PM ET Company Participants Mark Hussey - Chief Executive Officer and President John Kelly - Chief Financial Officer Conference Call Participants Andrew Nicholas - William Blair & Company Tyler Barishaw - Truist Securities Bill Sutherland - The Benchmark Company Kevin Steinke - Barrington Research Associates Operator Good afternoon and welcome to Huron Consulting Group's Webcast to discuss Financial Results for ...

Group 1: Earnings Performance - Huron Consulting reported quarterly earnings of $1.90 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and up from $1.29 per share a year ago, representing a 25% earnings surprise [1] - The company posted revenues of $388.42 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.88%, compared to year-ago revenues of $339.23 million [2] - Over the last four quarters, Huron Consulting has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Huron Consulting shares have increased approximately 0.8% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.20 on revenues of $381.47 million, and for the current fiscal year, it is $6.91 on revenues of $1.59 billion [7] Group 3: Industry Context - The Consulting Services industry, to which Huron Consulting belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Huron Consulting's stock performance [5][6]

Growth and Workforce - The company has increased its full-time professionals from 249 in 2002 to approximately 7,230 as of December 31, 2024, indicating significant growth[62] - The company relies heavily on its senior management team and other managing directors for revenue generation and client relationships, making retention critical for future success[57] - The company faces significant competition for talent, which may increase labor costs and negatively affect margins and results of operations[60] - The company must effectively manage organizational challenges associated with growth to achieve its business objectives[61] Business Model and Strategy - The company has modified its operating model effective January 1, 2022, to report under three industries, aimed at strengthening its go-to-market strategy and supporting growth[76] - The company intends to continue expanding internationally, which may introduce additional regulatory compliance risks[64] - The company’s growth strategy emphasizes innovation and investment in new technology to remain competitive in a rapidly changing market[84] - Digital offerings are a key focus, with the company needing to adapt to rapid technological changes to meet evolving client needs[83] Revenue and Financial Performance - A significant portion of the company's revenue is derived from clients in the healthcare and education industries, which are highly regulated and subject to changing influences[77] - A large portion of client contracts are short-term, leading to unpredictable operating results and potential revenue declines if new engagements are not secured[85] - The consulting services industry is highly competitive, with many competitors having greater resources and market presence, which could adversely affect the company's financial results[90] - The company’s financial results could suffer if it fails to achieve adequate utilization and suitable billing rates for its consultants[109] Risks and Challenges - The company faces significant uncertainty regarding future government spending, which could adversely affect funding for individual programs and delay purchasing decisions by customers[81] - The tax-exempt status of healthcare clients may be challenged, potentially impacting their financial health and demand for the company's services[82] - The company faces risks related to cybersecurity, including potential breaches that could disrupt operations and harm financial results[95] - Legal and regulatory complexities surrounding data protection laws may increase operational costs and impact the company's results[102] - The company faces increased litigation risk due to an expanded workforce, which may lead to significant legal liabilities[105] Financial Position and Debt - As of December 31, 2024, the company's outstanding indebtedness totaled $357.7 million, with $93.0 million under the Revolver and $264.7 million under the Term Loan[124] - The company has a senior secured revolving credit facility of $600 million and a senior secured term loan facility of $275 million, both maturing on November 15, 2027[124] - Borrowings under the senior secured credit facility totaled $357.7 million as of December 31, 2024, with a weighted average interest rate of 4.7%[291] - A hypothetical 100 basis point change in interest rates would have a $1.1 million effect on pretax income on an annualized basis as of December 31, 2024[291] Investments and Assets - Goodwill and other intangible assets amounted to $704.8 million, representing 52% of the company's total assets as of December 31, 2024[126] - The fair value of the investment in Shorelight Holdings, LLC is $62.3 million as of December 31, 2024, with a total cost basis of $40.9 million, indicating unrealized gains[128] - The investment in a hospital-at-home company has a carrying value of $7.4 million as of December 31, 2024, with a total cost basis of $5.0 million, reflecting cumulative unrealized gains of $28.6 million and losses of $26.3 million since the initial investment[130] - The fair value of the investment in Shorelight decreased from $68.0 million as of December 31, 2023, to $62.3 million as of December 31, 2024[295] - The company has not recognized any credit allowance on its investment in Shorelight as of December 31, 2024[128] - The company has established allowances for losses of receivables and unbilled services, which may need adjustment based on actual losses[133] Tax and Regulatory Environment - The overall tax environment remains uncertain, with potential changes in tax laws that could materially affect the company's profitability[138] - Unfavorable fluctuations in currency exchange rates, particularly between the U.S. dollar and Indian rupee, could materially affect the company's results of operations[71] - The company has exposure to foreign currency risk with INR-denominated intercompany expenses totaling INR 1.40 billion, or $16.3 million, as of December 31, 2024[293] - The company does not use derivative instruments for trading or speculative purposes, focusing instead on short-term marketable securities[297]

Revenue Growth - Revenues before reimbursable expenses increased by $49.2 million, or 14.5%, to a record $388.4 million in Q4 2024 from $339.2 million in Q4 2023[3] - Full year revenues before reimbursable expenses increased by $124.0 million, or 9.1%, to a record $1.49 billion for 2024 from $1.36 billion for 2023[12] - The total revenues for the twelve months ended December 31, 2024, were $1.52 billion, compared to $1.40 billion for the same period in 2023, indicating a year-over-year increase of about 8.7%[26] - Total revenues for Q4 2024 reached $399.3 million, a 14.1% increase from $350.0 million in Q4 2023[36] - Total revenues for the year ended December 31, 2024, were $1.52 billion, compared to $1.40 billion in 2023, reflecting an 8.8% increase[36] Net Income and Profitability - Net income increased by $31.2 million to $34.0 million in Q4 2024, compared to $2.8 million in Q4 2023, with Q4 2023 results impacted by a non-cash unrealized loss of $19.4 million[3] - Net income for 2024 increased by $54.1 million, or 86.7%, to $116.6 million, compared to $62.5 million for 2023[13] - Net income for the fourth quarter of 2024 was $34.0 million, significantly up from $2.8 million in the fourth quarter of 2023, reflecting a substantial increase in profitability[26] - Net income as a percentage of total revenues for Q4 2024 was 8.5%, significantly higher than 0.8% in Q4 2023[36] - Adjusted net income for the year ended December 31, 2024, was $120.4 million, compared to $96.2 million in 2023, a 25.1% increase[38] Earnings Per Share - Diluted earnings per share increased by $3.08, or 96.6%, to a record $6.27 for 2024, compared to $3.19 for 2023[13] - Adjusted diluted earnings per share increased by $1.56, or 31.8%, to a record $6.47 for 2024 from $4.91 for 2023[13] - Adjusted diluted earnings per share for Q4 2024 was $1.90, compared to $1.29 in Q4 2023, marking a 47.3% increase[38] - Adjusted diluted earnings per share for 2025 is projected to be in the range of $6.80 to $7.60[17] Cash Flow and Operating Activities - Net cash provided by operating activities increased by $66.1 million, or 48.8%, to a record $201.3 million for 2024, compared to $135.3 million for 2023[9] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $201,319,000, up from $135,262,000 in 2023[30] - The company reported a net cash increase of $9,762,000 for the twelve months ended December 31, 2024, compared to a net increase of $315,000 in 2023[30] - Cash and cash equivalents increased to $21.9 million in 2024 from $12.1 million in 2023, showing a growth of about 80.5%[28] Operational Metrics - The number of revenue-generating professionals increased by 5.0% to 4,694 as of December 31, 2024, from 4,469 as of December 31, 2023[11] - The total number of revenue-generating professionals increased by 12.8% to 6,224 as of December 31, 2024, compared to 5,519 in 2023[32] - The number of revenue-generating professionals in the Healthcare segment rose by 8.2% to 1,218 as of December 31, 2024, from 1,126 in 2023[32] - The number of Managed Services professionals in the Healthcare segment increased to 1,420 in Q4 2024 from 924 in Q4 2023, indicating a 53.8% growth[36] Guidance and Future Outlook - Huron provides full year 2025 guidance, including revenues before reimbursable expenses in a range of $1.58 billion to $1.66 billion[9] - The company provided guidance for full year 2025 revenues in the range of $1.58 billion to $1.66 billion, with adjusted EBITDA as a percentage of revenues expected to be between 14.0% and 14.5%[17] - The company will host an Investor Day on March 25, 2025, to discuss its strategy and financial goals[18] - The company anticipates a continued focus on optimizing operations and expanding service offerings to meet market demands[24] Expenses and Assets - Total operating expenses for the twelve months ended December 31, 2024, were $1.35 billion, up from $1.27 billion in 2023, reflecting an increase of approximately 6.2%[26] - The company reported total assets of $1.34 billion as of December 31, 2024, compared to $1.26 billion as of December 31, 2023, marking an increase of approximately 6.4%[28] - Operating income for the total company increased by 57.6% to $47,050,000 for the three months ended December 31, 2024, compared to $29,856,000 in 2023[32] - Operating income for the Healthcare segment increased by 37.5% to $61,337,000 for the three months ended December 31, 2024, compared to $44,606,000 in 2023[32] Managed Services - Managed Services capability revenues in the Education segment were $7.4 million for the three months ended December 31, 2024, down from $7.6 million in 2023[33] - Managed Services capability revenues before reimbursable expenses in the Healthcare segment were $24.0 million for Q4 2024, up from $16.3 million in Q4 2023, a 47.5% increase[36]

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in short-term investing to maximize profits, highlighting that while price movements can be volatile, certain indicators can help investors make informed decisions [1][2]. Group 1: Stock Performance - Huron Consulting (HURN) has shown a solid price increase of 11.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 2.6% over the last four weeks, suggesting that the upward trend is still intact [5]. - HURN is currently trading at 80.5% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - HURN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like HURN that are on an upward trend supported by strong fundamentals [3][8]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Huron Consulting (HURN) has shown a solid price increase of 13% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has experienced a price increase of 17.2% over the last four weeks, suggesting that the upward trend is still intact [5]. - HURN is currently trading at 80.7% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - HURN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term performance [7]. Group 3: Investment Strategy - The article suggests utilizing the "Recent Price Strength" screen to identify stocks like HURN that are on an upward trend supported by strong fundamentals [3]. - It mentions that there are over 45 Zacks Premium Screens available for investors to find winning stock picks based on their personal investing styles [8].

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of ...