Company Performance - Huron Consulting (HURN) shares have increased by 9.5% over the past month, reaching a new 52-week high of $118.1 [1] - The company has gained 13% year-to-date, compared to 16.8% for the Zacks Business Services sector and 14.8% for the Zacks Consulting Services industry [1] Earnings and Revenue - Huron Consulting has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - In the latest earnings report on October 29, 2024, Huron reported EPS of $1.68, exceeding the consensus estimate of $1.58, but missed the revenue estimate by 2.02% [2] - For the current fiscal year, Huron is expected to post earnings of $5.98 per share on revenues of $1.48 billion, reflecting a 21.79% change in EPS and an 8.65% change in revenues [3] - For the next fiscal year, earnings are projected to be $6.89 per share on revenues of $1.61 billion, indicating a year-over-year change of 15.18% in EPS and 8.62% in revenues [3] Valuation Metrics - Huron Consulting has a Value Score of A, a Growth Score of A, and a Momentum Score of B, resulting in a combined VGM Score of A [6] - The stock currently trades at 19.4X current fiscal year EPS estimates, below the peer industry average of 26.7X, and at 17.9X trailing cash flow compared to the peer group's average of 18.5X [7] - Huron has a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further price appreciation [8] Industry Comparison - Booz Allen Hamilton Holding Corporation (BAH) is a notable peer, also holding a Zacks Rank of 2 (Buy) with a Value Score of C, Growth Score of C, and Momentum Score of C [9] - BAH reported earnings that beat consensus estimates by 22.30% and is expected to post earnings of $6.01 per share on revenues of $11.92 billion for the current fiscal year [10] - The Consulting Services industry is performing well, ranking in the top 21% of all industries, providing favorable conditions for both Huron and BAH [11]

Core Viewpoint - The sustainability of a stock trend is crucial for successful short-term investing, and various factors must be considered to maintain momentum in stock prices [1][2]. Group 1: Stock Performance - Huron Consulting (HURN) has shown a solid price increase of 13.7% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 9.5% over the last four weeks, suggesting that the upward trend is still intact [5]. - HURN is currently trading at 94.2% of its 52-week high-low range, indicating a potential breakout [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 "Recent Price Strength" screen is a useful tool for identifying stocks like HURN that have sufficient fundamental strength to maintain their recent uptrend [3]. - There are additional stocks that meet the criteria of the "Recent Price Strength" screen, providing further investment opportunities [8].

Financial Data and Key Metrics Changes - Revenue growth in Q3 2024 was 3% year-over-year, compared to a strong growth of 26% in Q3 2023 [4][5] - RBR for Q3 2024 was $370 million, up 3.3% from $358.2 million in Q3 2023 [44] - Net income for Q3 2024 was $27.1 million or $1.47 per diluted share, compared to $21.5 million or $1.10 per diluted share in Q3 2023 [45] - Adjusted EBITDA was $54.9 million in Q3 2024, representing 14.8% of RBR, compared to $48 million or 13.4% of RBR in Q3 2023 [48] - Adjusted diluted earnings per share increased by 21% year-over-year to $1.68 in Q3 2024 [49] Business Line Data and Key Metrics Changes - Healthcare segment RBR grew 2.2% year-over-year to $183.1 million, driven by strong demand for managed services and digital offerings [50] - Education segment RBR increased by 9% to $121 million, aided by the GG+A acquisition and demand for technology services [52] - Commercial segment RBR declined 3% year-over-year to $65.9 million, but grew 12% sequentially from Q2 2024 [32][54] Market Data and Key Metrics Changes - The healthcare provider market remains bifurcated, with stronger systems investing for growth while weaker systems struggle [12][20] - The education sector faces challenges with declining enrollment trends and perceived value of a four-year degree [24][26] - The commercial market is seeing a rebound in digital offerings, with a projected 9% growth in IT services spending in 2025 [34] Company Strategy and Development Direction - The company is focused on expanding its capabilities in healthcare, education, and commercial segments, with a strong emphasis on digital transformation and managed services [14][30] - There is a commitment to margin enhancement initiatives, with adjusted EBITDA margins increasing by 140 basis points [7][8] - The company is optimistic about future growth, particularly in the commercial segment, which is seen as a significant opportunity [35][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue guidance for Q4 2024, citing strong sales conversion activity [64][66] - The company anticipates favorable demand tailwinds for its healthcare segment, with no significant changes expected in reimbursement rates [21] - There is a positive outlook for 2025, with expectations of a ramp-up in revenue and continued strong demand across segments [68][102] Other Important Information - The company narrowed its annual RBR guidance to $1.47 billion to $1.49 billion, maintaining the midpoint at $1.48 billion [39] - Cash flow from operations in Q3 2024 was $85.2 million, resulting in free cash flow of $77.6 million [58] - Total debt as of September 30, 2024, was $443.1 million, with a net debt decrease of $69.4 million compared to Q2 2024 [59] Q&A Session Summary Question: Insights on fourth quarter growth acceleration - Management highlighted strong sales conversion activity in Q3 as a key factor for confidence in Q4 growth, with a record high in bookings [64][66] Question: Headcount growth and talent matching - Management feels confident in their current talent to meet pipeline demands, with a blended utilization rate around 75% [71] Question: Growth rates in Healthcare segment - The growth in the Healthcare segment was driven by digital and managed services, with expectations for steady margins [75] Question: M&A environment and pipeline - The M&A pipeline is robust, with opportunities identified across healthcare and commercial segments [91] Question: Shift of project work from Q3 to Q4 - The shift is estimated to be in the $5 million to $10 million range, primarily due to timing of project starts [96] Question: Client comfort in moving forward with projects - Management noted a positive shift in client sentiment, indicating readiness to proceed with projects post-election [102]

Core Viewpoint - Huron Consulting (HURN) reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and showing an increase from $1.39 per share a year ago, indicating a positive earnings surprise of 6.33% [1][2] Financial Performance - The company posted revenues of $370.05 million for the quarter ended September 2024, which was 2.02% below the Zacks Consensus Estimate, compared to $358.18 million in the same quarter last year [2] - Over the last four quarters, Huron Consulting has surpassed consensus EPS estimates four times but has only topped revenue estimates once [2] Stock Performance and Outlook - Huron Consulting shares have increased by approximately 1.3% since the beginning of the year, while the S&P 500 has gained 22.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.53, with expected revenues of $376.54 million, and for the current fiscal year, the estimate is $5.95 on revenues of $1.48 billion [7] - The estimate revisions trend for Huron Consulting is mixed, resulting in a Zacks Rank 3 (Hold), 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 top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-50976 HURON CONSULTING GROUP INC. (Exact name of registrant as specified in its charter) Delaware 01-0666114 (State or other jurisdiction o ...

Revenue Growth - Revenues before reimbursable expenses increased $11.9 million, or 3.3%, to $370.0 million in Q3 2024 from $358.2 million in Q3 2023[1] - Revenues before reimbursable expenses increased $74.8 million, or 7.3%, to $1.10 billion for the first nine months of 2024 from $1.02 billion for the same prior year period[3] - Total revenues for Q3 2024 increased to $378.089 million, up from $367.466 million in Q3 2023[24] - Revenues before reimbursable expenses for Q3 2024 were $370.049 million, up from $358.178 million in Q3 2023[24] - Total revenues for the nine months ended September 30, 2024, grew by 7.0% to $1.12 billion compared to $1.05 billion in 2023[27] - Revenues before reimbursable expenses for the nine months ended September 30, 2024 were $1.10 billion, a 7.3% increase from $1.02 billion in the same period of 2023[40] Net Income and Profitability - Net income increased $5.6 million, or 26.2%, to $27.1 million in Q3 2024, compared to $21.5 million in Q3 2023[2] - Net income increased $23.0 million, or 38.5%, to $82.6 million for the first nine months of 2024, compared to $59.6 million for the same prior year period[3] - Net income for Q3 2024 rose to $27.149 million, compared to $21.516 million in Q3 2023[24] - Net income for the nine months ended September 30, 2024, increased to $82.6 million from $59.6 million in 2023, representing a 38.6% increase[26] - Net income for Q3 2024 was $27.1 million, up 26.2% from $21.5 million in Q3 2023[40] - Net income as a percentage of total revenues for the nine months ended September 30, 2024 was 7.4%, up from 5.7% in the same period of 2023[40] Adjusted EBITDA and Margins - Adjusted EBITDA increased $6.9 million, or 14.3%, to $54.9 million in Q3 2024 from $48.0 million in Q3 2023[2] - Adjusted EBITDA increased $18.4 million, or 14.6%, to $144.4 million for the first nine months of 2024 from $126.0 million for the same prior year period[4] - Adjusted EBITDA for Q3 2024 was $54.9 million, a 14.3% increase from $48.0 million in Q3 2023[40] - Adjusted EBITDA margin for Q3 2024 was 14.8% of revenues before reimbursable expenses, up from 13.4% in Q3 2023[40] Earnings Per Share - Diluted earnings per share increased $0.37, or 33.6%, to $1.47 in Q3 2024, compared to $1.10 in Q3 2023[2] - Earnings per diluted share for Q3 2024 were $1.47, up from $1.10 in Q3 2023[24] - Diluted earnings per share for Q3 2024 was $1.47, compared to $1.10 in Q3 2023, a 33.6% increase[41] - Adjusted diluted earnings per share for Q3 2024 was $1.68, up 20.9% from $1.39 in Q3 2023[41] Segment Performance - Healthcare segment revenues before reimbursable expenses increased by 10.4% to $554.0 million for the nine months ended September 30, 2024, compared to $502.0 million in 2023[27] - Education segment revenues before reimbursable expenses rose by 9.1% to $355.4 million for the nine months ended September 30, 2024, from $325.9 million in 2023[27] - Commercial segment revenues before reimbursable expenses decreased by 3.4% to $188.3 million for the nine months ended September 30, 2024, compared to $195.0 million in 2023[27] - Consulting and Managed Services revenues before reimbursable expenses grew by 7.7% to $634.4 million for the nine months ended September 30, 2024, compared to $589.1 million in 2023[28] - Digital revenues before reimbursable expenses increased by 6.8% to $463.2 million for the nine months ended September 30, 2024, from $433.7 million in 2023[28] Operating and Financial Metrics - Operating income for Q3 2024 was $42.445 million, compared to $37.342 million in Q3 2023[24] - Operating income for the nine months ended September 30, 2024, rose by 27.5% to $121.8 million compared to $95.5 million in 2023[29] - Income before taxes for the nine months ended September 30, 2024, increased by 30.6% to $107.2 million from $82.1 million in 2023[29] - Comprehensive income for Q3 2024 was $22.89 million, compared to $19.136 million in Q3 2023[24] Balance Sheet and Cash Flow - Total assets as of September 30, 2024, were $1.32878 billion, up from $1.262142 billion as of December 31, 2023[25] - Long-term debt increased to $428.204 million as of September 30, 2024, from $324 million as of December 31, 2023[25] - Cash and cash equivalents increased to $18.497 million as of September 30, 2024, from $12.149 million as of December 31, 2023[25] - Goodwill increased to $647.541 million as of September 30, 2024, from $625.711 million as of December 31, 2023[25] Workforce and Professional Growth - The number of revenue-generating professionals increased 10.4% to 5,896 as of September 30, 2024 from 5,341 as of September 30, 2023[12] - Total number of revenue-generating professionals increased by 10.4% to 5,896 as of September 30, 2024, from 5,341 in 2023[28] Guidance and Expectations - The company narrowed the range of expected revenues before reimbursable expenses to $1.47 billion to $1.49 billion while maintaining its previous midpoint of guidance[6] - The company increased its adjusted diluted earnings per share expectations to a range of $6.00 to $6.20[6] Litigation and Legal Costs - The company recorded a $15.0 million pre-tax litigation settlement gain in Q2 2024, with $11.7 million excluded from non-GAAP measures[43] - Third-party legal costs for the litigation matter were $3.3 million in 2024, with $2.7 million incurred in Q1 and $0.6 million in Q2[43]

The market expects Huron Consulting (HURN) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 29, 2024, might help the stock move higher if these key nu ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Huron Consulting (HURN) . This company, which is in the Zacks Consulting Services industry, shows potential for another earnings beat. This consulting company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two qua ...

Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth S ...

Shares of Huron Consulting (HURN) have gained 4.9% over the past four weeks to close the last trading session at $102.68, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $131.75 indicates a potential upside of 28.3%. The mean estimate comprises four short-term price targets with a standard deviation of $14.57. While the lowest estimate of $110 indicates a 7.1% increase from the ...