Leadership advisory firm Heidrick & Struggles Q2 revenue beats estimates
Overview
Heidrick & Struggles Q2 revenue rises 13.9% yr/yr, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 increases to $33.9 mln, margin at 10.7%
Co declares $0.15 per share cash dividend for Q3
Outlook
Company expects Q3 2025 revenue between $295 mln and $315 mln
Company says external factors such as the foreign exchange may impact Q3 revenue outlook
Result Drivers
EXECUTIVE SEARCH - Revenue increased 13.4% yr/yr, driven by growth in all regions, notably Europe and Asia Pacific
ON-DEMAND TALENT - Segment revenue grew 14.3% yr/yr, reflecting increased demand for flexible talent solutions
HEIDRICK CONSULTING - Consulting revenue rose 16.6% yr/yr, attributed to expanded client engagements
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $317.2 mln | $294.60 mln (3 Analysts) |
Q2 Net Income | $21.07 mln | ||
Q2 Operating Income | $25.23 mln | ||
Q2 Operating Margin | 8.0% | ||
Q2 Pretax Profit | $31.14 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for Heidrick & Struggles International Inc is $52.00, about 17.2% above its August 1 closing price of $43.05
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: