Huron Consulting Group (NASDAQ:HURN) Issues Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Huron Consulting Group (NASDAQ:HURN) released its quarterly earnings results on Tuesday. The business services provider reported $2.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.15, FiscalAI reports. Huron Consulting Group had a net margin of 6.38% and a return on equity of 32.33%. The firm had revenue of $491.45 million for the quarter, compared to the consensus estimate of $481.38 million. During the same quarter in the previous year, the firm posted $2.10 EPS. The firm’s quarterly revenue was up 11.4% on a year-over-year basis.

Here are the key takeaways from Huron Consulting Group’s conference call:

• Record third-quarter results: Revenue before reimbursable expenses rose 11.6% year over year to $482.5 million, while adjusted EBITDA margin reached an eight-year high of 16% and adjusted EPS increased 24.8% to $2.62.
• Strong healthcare and AI-driven demand: Healthcare revenue grew 16.5%, including nearly 40% organic growth in managed services for the third consecutive quarter, while more than 65% of digital bookings over the past six months involved direct or AI-enabled work.
• Improved outlook and bookings: Huron narrowed full-year revenue guidance to $1.855 billion-$1.885 billion and raised adjusted non-GAAP EPS guidance to $9.20-$9.40; trailing six-month bookings increased more than 20% year over year, supporting management’s confidence in fourth-quarter and 2027 growth.
• Segment performance was mixed: Education revenue grew 6.6% organically and expanded its operating margin to 29.1%, while commercial revenue grew 6.4% but margin fell to 13.9% due to higher bonuses and $2.2 million of growth-oriented investments intended to accelerate 2027 performance.
• Cash flow and reported earnings faced headwinds: Operating cash flow declined to $57 million, prompting a reduction in full-year free-cash-flow guidance to $150 million-$170 million because of collection timing and performance-based healthcare projects; reported EPS also included a $0.36-per-share unfavorable credit-loss impact.

Huron Consulting Group Trading Up 1.6%

HURN opened at $198.17 on Wednesday. The stock has a market capitalization of $3.15 billion, a PE ratio of 23.05 and a beta of 0.09. The firm’s fifty day moving average price is $167.43 and its 200 day moving average price is $138.91. The company has a debt-to-equity ratio of 2.11, a current ratio of 1.71 and a quick ratio of 1.71. Huron Consulting Group has a 12-month low of $84.88 and a 12-month high of $203.37.

Analysts Set New Price Targets

HURN has been the subject of several recent analyst reports. Weiss Ratings upgraded Huron Consulting Group from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Zacks Research lowered Huron Consulting Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 28th. Truist Financial boosted their price target on Huron Consulting Group from $175.00 to $220.00 and gave the stock a “buy” rating in a research note on Friday, October 23rd. Wall Street Zen raised Huron Consulting Group from a “hold” rating to a “buy” rating in a report on Saturday, August 1st. Finally, Evercore raised Huron Consulting Group to an “outperform” rating in a report on Friday, October 23rd. Six analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Huron Consulting Group has an average rating of “Moderate Buy” and an average price target of $200.50.

About Huron Consulting Group

Huron Consulting Group, Inc is a professional services firm that helps organizations improve performance, manage change, and use technology to address complex business challenges. The company serves clients in the healthcare, education, and public sectors, as well as commercial organizations.

Its services include operational and financial improvement, strategy and organizational consulting, digital transformation, technology implementation, data and analytics, and managed services. Huron also provides specialized advisory support for hospitals and health systems, colleges and universities, government agencies, and businesses seeking to improve processes, financial performance, and customer or patient experiences.

Founded in 2002 and headquartered in Chicago, Huron serves clients across the United States and internationally.