The Hackett Group (NASDAQ:HCKT) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

The Hackett Group (NASDAQ:HCKT) released its earnings results on Tuesday. The business services provider reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.37 by $0.02, FiscalAI reports. The business had revenue of $69.79 million during the quarter, compared to the consensus estimate of $68.67 million. The Hackett Group had a net margin of 5.86% and a return on equity of 34.77%.

Here are the key takeaways from The Hackett Group’s conference call:

• Third-quarter results improved sequentially: Revenue before reimbursements rose 1% to $68.9 million, adjusted EPS reached $0.39, and adjusted gross margin increased to 44.9% from 44.1% in Q2 and 42.6% a year ago.
• AI-enabled platforms are beginning to improve operating leverage. Management cited productivity gains from XT and AIX, lower SG&A, and improved delivery economics, with the platforms expected to support more than 90% of engagements over time.
• Management expects revenue growth to resume as early as 2027. Executives believe AI-related scope expansion, higher-margin new business, and broader platform adoption can drive further margin expansion and operating leverage.
• Fourth-quarter guidance calls for relatively stable revenue but stronger margins: Revenue is expected at $68 million-$70 million, adjusted gross margin at approximately 48.5%, and adjusted EPS at $0.39-$0.41, despite fewer billing days, a 53-week fiscal year, and a roughly $0.03 EPS calendar impact.
• Demand remains subject to delayed client decisions and uneven segment performance. Clients continue to scrutinize AI ROI, SAP revenue fell 6% sequentially, fourth-quarter VAR revenue is expected to be below last year’s record level, and the company plans to record an approximately $1 million AI transition charge.

The Hackett Group Stock Down 1.2%

Shares of HCKT stock traded down $0.16 during trading hours on Tuesday, reaching $13.04. The company had a trading volume of 207,116 shares, compared to its average volume of 305,536. The company has a market cap of $324.44 million, a price-to-earnings ratio of 20.06, a price-to-earnings-growth ratio of 1.07 and a beta of 0.96. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.94 and a quick ratio of 1.94. The Hackett Group has a 12 month low of $9.15 and a 12 month high of $20.68. The business has a fifty day simple moving average of $11.20 and a 200-day simple moving average of $12.33.

Analyst Ratings Changes

Several research firms recently commented on HCKT. Zacks Research raised The Hackett Group from a “strong sell” rating to a “hold” rating in a research note on Monday, October 5th. Wall Street Zen raised shares of The Hackett Group from a “hold” rating to a “buy” rating in a research report on Saturday, September 5th. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of The Hackett Group in a report on Friday, October 2nd. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, The Hackett Group has an average rating of “Hold” and a consensus price target of $16.50.

The Hackett Group Company Profile

The Hackett Group, Inc is a global business and technology consulting firm that helps organizations improve performance, transform operations and adopt digital technologies. Its services are informed by proprietary research, benchmarking data and best-practice insights across major corporate functions.

The company advises clients on finance, human resources, procurement, information technology, supply chain management and other enterprise operations. Its offerings include benchmarking and performance studies, business transformation programs, enterprise performance management, technology consulting and implementation services.