Assessing The Hackett Group Inc’s (NASDAQ:HCKT) past track record of performance is a useful exercise for investors. It allows us to understand whether the company has met or exceed expectations, which is a great indicator for future performance. Below, I assess HCKT’s latest performance announced on 29 December 2017 and evaluate these figures to its historical trend and industry movements. See our latest analysis for Hackett Group
Did HCKT’s recent earnings growth beat the long-term trend and the industry?
I prefer to use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This technique allows me to assess different companies in a uniform manner using the latest information. For Hackett Group, its most recent trailing-twelve-month earnings is US$27.35M, which, in comparison to last year’s level, has climbed up by 27.13%. Since these figures may be relatively nearsighted, I’ve calculated an annualized five-year figure for Hackett Group’s net income, which stands at US$16.39M This means generally, Hackett Group has been able to steadily grow its bottom line over the past few years as well.
What’s the driver of this growth? Let’s take a look at if it is merely attributable to industry tailwinds, or if Hackett Group has experienced some company-specific growth. The rise in earnings seems to be driven by a robust top-line increase outstripping its growth rate of costs. Though this brought about a margin contraction, it has made Hackett Group more profitable. Scanning growth from a sector-level, the US it industry has been growing its average earnings by double-digit 12.38% in the past twelve months, and 11.46% over the last five years. This means that any uplift the industry is benefiting from, Hackett Group is able to leverage this to its advantage.
What does this mean?
Hackett Group’s track record can be a valuable insight into its earnings performance, but it certainly doesn’t tell the whole story. While Hackett Group has a good historical track record with positive growth and profitability, there’s no certainty that this will extrapolate into the future. You should continue to research Hackett Group to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for HCKT’s future growth? Take a look at our free research report of analyst consensus for HCKT’s outlook.
- Financial Health: Is HCKT’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 29 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.