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Sep 27, 2024

Hackett Q3 2024 Earnings Report

The Hackett Group announced third quarter results, exceeding revenue and earnings per share guidance and acquiring LeewayHertz.

Key Takeaways

The Hackett Group reported solid operating results for Q3 2024, exceeding revenue and EPS guidance. The company's strategic move to acquire LeewayHertz, a Gen AI consulting and implementation firm, positions them to capitalize on the rapidly emerging Gen AI sector.

Total revenue reached $79.8 million, with revenue before reimbursements at $77.9 million, surpassing the high end of guidance.

GAAP diluted earnings per share were $0.31, compared to $0.34 in Q3 2023, impacted by non-cash stock compensation expenses.

Adjusted diluted earnings per share, a non-GAAP measure, was $0.43, exceeding the high end of guidance, compared to $0.41 in Q3 2023.

The Board of Directors approved an additional $20.0 million for the share repurchase program, increasing authorization to $31.1 million, and declared a fourth quarter dividend of $0.11 per share.

Total Revenue
$79.8M
Previous year: $75.9M
+5.2%
EPS
$0.43
Previous year: $0.41
+4.9%
Consultant headcount
1.26K
Total headcount
1.55K
Days sales outstanding
70
Gross Profit
$31.5M
Previous year: $30.2M
+4.4%
Cash and Equivalents
$9.96M
Previous year: $9.88M
+0.9%
Free Cash Flow
$9.35M
Previous year: $6.09M
+53.5%
Total Assets
$191M
Previous year: $181M
+5.5%

Hackett

Hackett

Forward Guidance

The Company estimates total revenue before reimbursements for the fourth quarter of 2024 will be in the range of $73.5 million to $75.0 million. The Company estimates adjusted diluted earnings per share for the fourth quarter of 2024 to be in the range of $0.41 and $0.43, which assumes a GAAP effective tax rate of 27.6%.

Positive Outlook

  • Total revenue before reimbursements for Q4 2024 is estimated between $73.5 million and $75.0 million.
  • Adjusted diluted earnings per share for Q4 2024 are projected to be between $0.41 and $0.43.
  • Guidance assumes a GAAP effective tax rate of 27.6%.