Heidrick & Struggles (HSII) To Post Q4 Earnings: What's Up?

Heidrick & Struggles International, Inc. (NASDAQ:HSII) is scheduled to report fourth-quarter 2018 results on Feb 25. In the last reported quarter, the company delivered positive earnings surprise of 70%.

The stock has rallied 33.3% in the past year compared with the 3.6% rise of the industry it belongs to.

How Things are Shaping up for the Announcement?

Heidrick & Struggles is currently focusing on four initiatives, increasing the scale and impact of the Executive Search and Heidrick Consulting segments, cross-enterprise collaboration between search and consulting, delivering a premium experience to clients and improving cost structure to boost profits. The company is progressing well with these initiatives, which is likely to boost quarterly results.

Heidrick & Struggles International, Inc. Net Income (TTM)

Heidrick & Struggles has significantly improved search business through the utilization of productive consultant teams. In terms of Heidrick Consulting, the company continues to hire partners and principals.

The company has significantly increased cross-selling initiatives and client engagements. Adoption of the Heidrick Way continues to rise and the company is amassing a collection of leadership data points through analysis of which, it can provide clients with aggregated market-level talent insights.

The company is seeing favorable market trends across all three regions — Americas, Europe and the Asia Pacific.

A Beat or a Miss This Time?

The company has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold), a combination that lowers the possibility of earnings beat. This is because, per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat estimates. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

We don’t recommend Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

Yext, Inc (NYSE:YEXT) has an Earnings ESP of +1.56% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Everi Holdings Inc (NYSE:EVRI) has an Earnings ESP of +20.00% and a Zacks Rank #2.

EVO Payments (NASDAQ:EVOP) has an Earnings ESP of +1.89% and a Zacks Rank #3.

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