Huron (HURN) Q2 EPS Jumps 12.5%

Core Insights - Huron Consulting Group reported adjusted diluted earnings per share (non-GAAP) of $1.89, exceeding analyst estimates by $0.10, while revenue (GAAP) was $402.5 million, aligning with expectations [1][2] - The company raised its full-year guidance, projecting improved revenue and adjusted profits [1][10] - Despite strong non-GAAP metrics, reported net income (GAAP) fell due to a one-time investment impairment [1][6] Financial Performance - Adjusted EBITDA increased by 8.8% to $60.6 million, while adjusted diluted EPS rose by 12.5% [2][6] - Reported net income (GAAP) dropped by 48.3% to $19.4 million compared to Q2 2024, and GAAP EPS fell by 46.3% to $1.09 [2][6] - Revenue growth was 8.3%, with Healthcare contributing $197.8 million (up 4.1%), Education at $129.3 million (up 5.3%), and Commercial segment revenue increasing by 28.2% to $75.4 million [5][6] Business Overview - Huron Consulting Group specializes in management consulting for healthcare, education, and commercial sectors, focusing on strategy, operations, technology, and digital transformation [3][4] - The company aims to expand its presence in healthcare and education while diversifying into commercial sectors like financial services and energy [4] Segment Performance - Digital revenue grew by 13.1% to $173.4 million, with utilization rates for Digital professionals reaching 77.8% [7] - The integration of AXIA Consulting contributed to revenue growth in the Commercial segment, although traditional consulting services faced volatility [8] Investment and Growth Strategy - Huron increased its revenue-generating headcount by 7.8% year over year and returned $133.9 million to shareholders through share repurchases [9] - The company extended its credit facility to $1.1 billion, enhancing its capacity for future investments [9] Future Outlook - Management raised full-year revenue guidance to between $1.64 billion and $1.68 billion and adjusted diluted EPS target to $7.30 to $7.70 [10] - Adjusted EBITDA margins are projected to be between 14.0% and 14.5% of revenue, reflecting confidence in core market execution and acquisition integration [10]