NASDAQ$HSII

Heidrick & Struggles International Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

First quarter results were announced, with net revenue in-line with the prior year and operating income increasing.

Heidrick & Struggles reported first quarter results with net revenue of $171.5 million, consistent with the prior year. Operating income increased by 10.7% to $18.2 million, and adjusted EBITDA grew by 14.6% to $23.6 million. The company ended the quarter with $322 million in liquidity.

  • Net revenue of $171.5 million was in-line with record year-ago results of $171.6 million.
  • Operating income grew 10.7% to $18.2 million compared to $16.4 million in 2019.
  • Adjusted EBITDA grew 14.6% over prior year period to $23.6 million.
  • Operating margin expanded 100 basis points to 10.6% compared to 9.6% in last year’s first quarter.

Headline financials

Total Revenue

$171M

Previous: $172M-0.1%
EPS (adj)

$0.44

Previous: $0.62-29.0%
Consultant Productivity

$1.6M

Previous: $1.7M-5.9%
Avg Revenue per Exec Search

$119K

Previous: $124K-4.1%
Adjusted EBITDA

$23.6M

Previous: $20.6M+14.6%
Adjusted EBITDA Margin

13.8%

Previous: 12.0%+15.0%
Capital Expenditures

$1.75M

Previous: $898K+95.2%
Free Cash Flow

-$167M

Previous: -$156M-7.2%
Net Income

$8.67M

Previous: $12.1M-28.3%
Operating Income

$18.2M

Previous: $16.4M+10.7%
Gross Profit

$53.8M

Previous: $55.5M-3.1%
Cash & Equivalents

$251M

Previous: $114M+119.4%
Total Assets

$793M

Previous: $672M+17.9%
Stock-Based Comp

$2.61M

Previous: $1.34M+94.6%

Revenue & EPS history

Heidrick & Struggles · Revenue · Quarterly

$171M

Q1 2020-0.1%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Heidrick & Struggles · $171M total across 2 segments · Q1 2020

  • Executive Search
    $155M-1.8%
  • Heidrick Consulting
    $16M+20.6%

Forward guidance

Given the continued uncertainty due to the COVID-19 pandemic, the Company believes it is prudent to refrain from providing financial guidance for the 2020 second quarter at this time.

Historical earnings impact

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

Avg. return before/after earnings

Based on 6 quarterly earnings reports

Historical avg

+2.0%

Avg return

Earnings day

+10.0%

Avg return

5 days after

+10.5%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+27.6%

Q4 2018

Best reaction

-19.4%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%-0.0%+0.3%
Q2 2025+4.8%+3.8%+15.9%
Q1 2025+3.8%+8.2%+11.4%
Q4 2024+12.3%+18.0%+4.1%
Q3 2024+7.6%+20.7%+16.7%
Q2 2024+14.3%+6.1%+6.4%
Q1 2024-1.4%+8.3%+16.6%
Q4 2023+16.5%+15.2%+12.6%
Q3 2023+7.6%
Q2 2023+3.8%
Q1 2023-11.1%
Q4 2022+14.8%
Q3 2022-5.4%
Q2 2022+1.5%
Q1 2022-19.4%
Q4 2021-5.6%
Q3 2021+2.1%
Q2 2021+3.0%
Q1 2021+7.7%
Q4 2020+8.6%
Q3 2020+9.0%
Q2 2020+1.1%
Q1 2020-3.5%
Q4 2019-18.6%
Q3 2019+1.3%
Q2 2019-3.1%
Q1 2019-8.5%
Q4 2018+27.6%
Q3 2018+25.5%
Q2 2018+18.2%
Q1 2018+18.4%
Q4 2017+1.2%
Q3 2017+15.7%
Q2 2017-10.6%
Q1 2017-15.9%
Q4 2016+13.7%
Q3 2016-13.4%
Q2 2016+19.7%
Q1 2016-16.6%
Q4 2015-0.4%
Q3 2015+26.4%
Q2 2015-6.1%
Q1 2015+4.2%
Q4 2014+2.3%
Q3 2014-4.7%
Q2 2014+5.6%
Q1 2014-2.3%
Q4 2013+2.4%
Q3 2013+0.3%
Q2 2013+2.6%
Q1 2013+11.6%
Q4 2012-17.6%
Q3 2012-0.5%
Q2 2012-14.8%
Q1 2011-5.6%
Q1 2012-0.8%
Q4 2009+2.7%
Q4 2011+2.7%
Q3 2010+1.2%
Q3 2011+1.2%
Q2 2011-2.2%
Q2 2010-2.2%
Q4 2010-2.2%
Q1 2010-4.0%

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