Yahoo Finance The Hackett Group, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
A week ago, The Hackett Group, Inc. (NASDAQ:HCKT) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Hackett Group beat earnings, with revenues hitting US$77m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 12%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Hackett Group
Taking into account the latest results, the current consensus from Hackett Group's two analysts is for revenues of US$305.5m in 2024. This would reflect a satisfactory 2.8% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$1.27, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$307.6m and earnings per share (EPS) of US$1.40 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$26.83, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Hackett Group'shistorical trends, as the 3.8% annualised revenue growth to the end of 2024 is roughly in line with the 3.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.2% annually. So although Hackett Group is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hackett Group's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Hackett Group going out as far as 2025, and you can see them free on our platform here.
You can also view our analysis of Hackett Group's balance sheet, and whether we think Hackett Group is carrying too much debt, for free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
