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Mar 27, 2020
Hackett Q1 2020 Earnings Report
The Hackett Group's first quarter results were announced with a 5% increase in net revenue and pro forma EPS up by 9%.
Key Takeaways
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.
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.
Positive Outlook
- 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
Challenges Ahead
- 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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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