NASDAQ$HCKT

The Hackett Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

The Hackett Group's first quarter results were announced with a 5% increase in net revenue and pro forma EPS up by 9%.

The Hackett Group reported a solid first quarter with net revenue up 5% to $65.2 million and pro forma EPS up 9% to $0.24. The company ended the quarter with a strong cash position of $23.3 million and no outstanding debt. However, due to economic uncertainty, the company expects sequential revenue declines of 15% to 20% in the second quarter.

  • Q1 2020 net revenue was $65.2 million, a 5% increase year-over-year.
  • Q1 2020 pro forma EPS was $0.24, a 9% increase year-over-year.
  • Q1 2020 GAAP EPS was $0.17, compared to $0.22 in the same period last year.
  • The company had a cash balance of $23.3 million at the end of Q1 2020 with no outstanding debt.

Headline financials

Total Revenue

$69.5M

Previous: $67.2M+3.5%
EPS (adj)

$0.24

Previous: $0.22+9.1%
Capital Expenditures

-$533K

Previous: -$1.51M+64.6%
Free Cash Flow

$4.99M

Previous: $5.59M-10.6%
Net Income

$5.53M

Previous: $7.09M-22.1%
Operating Income

$7.71M

Previous: $8.59M-10.3%
Gross Profit

$22.5M

Previous: $22.6M-0.4%
Cash & Equivalents

$23.3M

Previous: $10.7M+118.6%
Total Assets

$195M

Previous: $188M+4.0%
Stock-Based Comp

$2.23M

Previous: $1.7M+30.9%

Revenue & EPS history

Hackett · Revenue · Quarterly

$69.5M

Q1 2020+3.5%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Due to the economic uncertainty, the company expects sequential revenue declines of 15% to 20% from Q1 2020 to Q2 2020 and anticipates a significant level of profitability. However, cash balances net of any outstanding debt are not expected to decrease during the second quarter of 2020.

Tailwinds

  • Maintaining current staffing levels through the balance of the second quarter.
  • Strong cash position to navigate the volatility.
  • Well positioned once the economic demand recovers.
  • Do not expect cash balances net of any outstanding debt to decrease during the second quarter of 2020.
  • Associates successfully adapting to client’s virtual service delivery requirements

Headwinds

  • Economic disruption from the coronavirus.
  • Significant economic uncertainty.
  • Sequential revenue declines of 15% to 20% from the first quarter of 2020 to the second quarter of 2020.
  • Expect to forego a significant level of profitability.
  • Board of Directors deferred our dividend declaration decision until closer to quarter end.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.8%

Avg return

30 days after

50%

32 / 64 earnings

Positive

+18.6%

Q3 2014

Best reaction

-29.0%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-29.0%-25.3%-21.5%
Q4 2025+10.0%-6.1%-4.7%
Q3 2025+7.1%+4.4%+10.0%
Q1 2025-8.0%-1.6%-3.9%
Q4 2024-2.7%-4.5%-9.8%
Q3 2024+18.2%+28.2%+32.5%
Q2 2024+2.1%+0.9%+1.8%
Q1 2024-3.4%-1.9%-0.6%
Q4 2023+7.2%+4.5%+4.5%
Q3 2023-7.9%-7.1%-3.6%
Q2 2023+0.9%+2.5%+3.4%
Q1 2023-0.9%+0.6%+11.0%
Q4 2022-14.5%-14.1%-19.8%
Q3 2022+3.1%+5.0%+8.8%
Q2 2022+2.1%+3.2%-8.8%
Q1 2022-10.1%-10.9%-16.1%
Q4 2021+5.3%+7.3%+16.2%
Q3 2021+1.4%+1.6%-3.7%
Q2 2021+2.5%+5.8%+16.2%
Q1 2021+1.8%+2.8%+5.1%
Q4 2020+11.3%+5.8%+9.7%
Q3 2020+12.8%+12.2%+12.2%
Q2 2020-2.0%-1.0%-10.4%
Q1 2020-14.9%-6.3%-4.0%
Q4 2019+15.0%+9.5%-31.6%
Q3 2019-12.7%-12.5%-13.0%
Q2 2019+2.8%+1.9%+2.8%
Q1 2019+4.8%+2.7%+2.5%
Q4 2018-13.2%-14.4%-15.2%
Q3 2018-11.1%-16.1%-23.7%
Q2 2018+6.0%+4.4%+8.2%
Q1 2018-4.4%-2.8%-0.6%
Q4 2017+12.9%+12.6%+4.7%
Q3 2017-0.5%+2.3%+6.6%
Q2 2017-12.8%-15.9%-13.5%
Q1 2017-21.0%-22.7%-24.4%
Q4 2016+18.3%+20.3%+14.1%
Q3 2016-4.5%+4.2%+11.9%
Q2 2016+14.0%+10.3%+15.6%
Q1 2016-11.1%
Q4 2015-2.7%
Q3 2015+15.8%
Q2 2015+14.7%
Q1 2015+15.6%
Q4 2014+14.6%
Q3 2014+18.6%
Q2 2014+1.4%
Q1 2014+1.9%
Q4 2013-0.2%
Q3 2013-10.0%
Q2 2013+14.2%
Q1 2013+0.8%
Q4 2012-7.3%
Q3 2012+5.1%
Q2 2012-19.1%
Q1 2011-9.2%
Q1 2012+12.8%
Q1 2010-2.4%
Q4 2011-2.4%
Q3 2011-3.1%
Q3 2010-3.1%
Q2 2011-8.2%
Q2 2010-8.2%
Q4 2010-8.2%

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