NASDAQ$HCKT

The Hackett Group Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

The Hackett Group reported operating results that exceeded revenue and adjusted earnings per share guidance for the fourth quarter of 2024.

The Hackett Group announced strong fourth-quarter 2024 financial results, with total revenue reaching $79.2 million and adjusted diluted earnings per share at $0.47, both exceeding guidance. The company emphasized its strategic investments in Gen AI capabilities, highlighted by the acquisition of LeewayHertz and the upcoming release of AI XPLR version 3, positioning itself as a leader in Gen AI consulting.

  • Total revenue for Q4 2024 was $79.2 million, surpassing guidance and increasing from $72.4 million in Q4 2023.
  • Adjusted diluted earnings per share for Q4 2024 was $0.47, exceeding guidance and up from $0.39 in Q4 2023.
  • GAAP diluted earnings per share for Q4 2024 was $0.12, impacted by non-cash compensation expenses related to a stock price award program and the LeewayHertz acquisition.
  • The company's cash flow from operations was $20.6 million in Q4 2024, and it reduced its debt by $7.0 million while repurchasing 117 thousand shares of its stock.

Headline financials

Total Revenue

$79.2M

Previous: $72.4M+9.4%
EPS (adj)

$0.47

Previous: $0.39+20.5%
Cash from Operations

$20.6M

Previous: $25.6M-19.3%
Depreciation

$947K

Previous: $894K+5.9%
Amortization

$148K

No prior period
Capital Expenditures

$1.02M

Previous: $898K+13.4%
Shares Purchased

117.0K

No prior period
Cost of Shares Repurchased

$3.63M

No prior period
Avg Price Per Share Purchased

$30.95

No prior period
Remaining Plan Authorization

$27.5M

Previous: $13.9M+97.4%
Net Income

$3.56M

Previous: $7.85M-54.6%
Operating Income

$7.75M

Previous: $11.5M-32.5%
Gross Profit

$30.2M

Previous: $29.3M+3.0%

Revenue & EPS history

Hackett · Revenue · Quarterly

$79.2M

Q4 2024+9.4%vs Q4 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Forward guidance

For the first quarter of 2025, The Hackett Group anticipates total revenue before reimbursements to be between $75.0 million and $76.5 million, with adjusted diluted earnings per share projected to be in the range of $0.39 to $0.41, assuming a GAAP effective tax rate of 22%.

Tailwinds

  • Continued focus on Gen AI capabilities and revenue growth.
  • Anticipated release of AI XPLR version 3 to enhance service offerings.
  • Strategic acquisition of LeewayHertz strengthens end-to-end Gen AI consulting and implementation.
  • Differentiated software platforms (AI XPLR and ZBrain) expected to improve service and licensing revenue growth.
  • Board of Directors authorized a 9% increase in annual dividend, signaling confidence in future performance.

Headwinds

  • GAAP effective tax rate of 22% assumed for guidance, which could fluctuate.
  • Non-cash stock-based compensation expense and acquisition-related costs continue to impact GAAP net income.
  • High variability and low visibility of certain excluded items make GAAP reconciliation difficult for forward-looking measures.
  • Future hiring needs and equity award volumes could impact non-cash stock-based compensation expense.
  • Non-recurring income tax adjustments and valuation allowances on deferred tax assets could affect income tax provisions.

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 Q4 2024

Historical avgQ4 2024

+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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