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].

Core Viewpoint - Huron Consulting Group (HURN) is identified as a strong value stock, currently holding a Zacks Rank of 2 (Buy) and an A grade for Value, indicating it is likely undervalued in the market [4][8]. Valuation Metrics - HURN has a P/E ratio of 15.73, significantly lower than its industry's average P/E of 29.79, suggesting it is undervalued compared to peers [4]. - The company's P/B ratio stands at 3.73, which is attractive compared to the industry's average P/B of 9.89, indicating a favorable valuation [5]. - HURN's P/S ratio is 1.4, lower than the industry's average P/S of 2.02, reinforcing the perception of undervaluation [6]. - The P/CF ratio for HURN is 18.43, which is appealing when compared to the industry's average P/CF of 28.43, further supporting the argument for its undervaluation [7]. Earnings Outlook - The combination of HURN's strong valuation metrics and positive earnings outlook positions it as an impressive value stock in the current market [8].

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]