Huron Consulting Group Inc (HURN) Reports Growth Amidst Investment Volatility
Revenue Growth: Q4 revenues rose by 8.1% to $339.2 million, and full-year revenues surged by 20.3% to $1.36 billion.
Net Income Fluctuation: Q4 net income decreased to $2.8 million, impacted by a non-cash unrealized loss, while full-year net income was $62.5 million.
Adjusted EBITDA: Q4 adjusted EBITDA grew by 5.9% to $41.4 million, and full-year adjusted EBITDA increased by 27.9% to $167.3 million.
Earnings Per Share (EPS): Q4 diluted EPS was $0.15, and full-year diluted EPS was $3.19, both affected by investment valuation changes.
Operational Cash Flow: Net cash provided by operating activities rose significantly by 58.4% to $135.3 million for 2023.
Shareholder Returns: Huron repurchased 1.5 million shares, returning $123.6 million to shareholders in 2023.
2024 Guidance: Revenue expectations for 2024 are set between $1.46 billion and $1.54 billion.
On February 27, 2024, Huron Consulting Group Inc (NASDAQ:HURN) released its 8-K filing, detailing its financial performance for the fourth quarter and the full year of 2023. The professional services firm, which specializes in strategy, technology, operations, advisory services, and analytics, reported an 8.1% increase in Q4 revenues to $339.2 million and a 20.3% increase in full-year revenues to $1.36 billion. The Healthcare segment led the revenue growth, which is the company's largest segment.
Huron's Q4 net income was $2.8 million, a decrease from $17.1 million in the same quarter of the previous year, primarily due to a non-cash unrealized loss of $19.4 million related to the company's investment in a hospital-at-home company. Despite this, the full-year net income stood at $62.5 million. Adjusted EBITDA for Q4 increased by 5.9% to $41.4 million, and for the full year, it rose by 27.9% to $167.3 million, reflecting the company's operational efficiency and profitability.
The diluted earnings per share (EPS) for Q4 was $0.15, compared to $0.85 in Q4 2022, while the full-year diluted EPS was $3.19, compared to $3.64 in the previous year. The adjusted diluted EPS, however, showed an increase of 15.2% to $1.29 for Q4 and a 43.1% increase to $4.91 for the full year, indicating strong underlying earnings power.
Operational cash flow saw a significant increase, with net cash provided by operating activities rising by 58.4% to $135.3 million for 2023. Huron also demonstrated its commitment to shareholder returns by repurchasing 1.5 million shares, amounting to $123.6 million in 2023.
Looking ahead, Huron provided revenue guidance for 2024, projecting revenues to be in the range of $1.46 billion to $1.54 billion. The company also secured a $275 million term loan, enhancing its capacity for investment and shareholder returns.
Mark Hussey, CEO and President of Huron, commented on the results, stating, "Driven by strong growth across all three operating segments, we achieved record revenues and expanded our operating margins for the third consecutive year." He attributed the success to the company's talented team and their commitment to making a lasting impact on clients and the business.
Our financial performance demonstrates the foundation we have established to continue delivering on our medium-term investor objectives. Our deep industry expertise and leading market positions in healthcare and education, our expanding presence in commercial industries, and our rapidly growing portfolio of digital capabilities position us well to fulfill ongoing market demand and to meet or exceed our medium-term financial objectives for low double-digit revenue growth, increased profitability margins, and higher earnings per share," Hussey added.
Huron's performance in 2023, despite the investment-related setbacks, showcases the firm's resilience and strategic focus. With a positive outlook for 2024 and a strong foundation in place, Huron is poised to continue its growth trajectory and deliver value to its clients and shareholders.
Explore the complete 8-K earnings release (here) from Huron Consulting Group Inc for further details.
This article first appeared on GuruFocus.
