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

The Hackett Group (NASDAQ:HCKT) announced its earnings results on Tuesday. The business services provider reported $0.39 EPS for the quarter, beating the consensus estimate of $0.37 by $0.02, FiscalAI reports. The Hackett Group had a return on equity of 38.91% and a net margin of 6.29%. The company had revenue of $69.79 million for the quarter, compared to analyst estimates of $68.67 million.

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 Performance

Shares of The Hackett Group stock traded down $0.13 during trading hours on Thursday, hitting $13.15. 163,092 shares of the company’s stock traded hands, compared to its average volume of 306,594. The stock has a market capitalization of $327.17 million, a price-to-earnings ratio of 18.79, a PEG ratio of 1.11 and a beta of 0.89. 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 company has a fifty day simple moving average of $11.28 and a 200-day simple moving average of $12.25.

The Hackett Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Investors of record on Thursday, December 24th will be given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend is Thursday, December 24th. The Hackett Group’s dividend payout ratio (DPR) is presently 73.85%.

Wall Street Analysts Forecast Growth

HCKT has been the topic of several recent analyst reports. Weiss Ratings reissued a “sell (d+)” rating on shares of The Hackett Group in a research note on Friday, October 2nd. Zacks Research raised shares of The Hackett Group from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. Finally, Wall Street Zen upgraded shares of The Hackett Group from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price 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.