MIAMI - The Hackett Group , Inc. (NASDAQ: NASDAQ:HCKT), a leader in benchmarking, executive advisory, and strategic consultancy, reported fourth-quarter financial results that surpassed analyst predictions for earnings and revenue. The company's adjusted earnings per share (EPS) for the quarter came in at $0.39, which was $0.02 higher than the analyst estimate of $0.37. Total revenue reached $72.4 million, exceeding the consensus estimate of $69.65 million and representing an increase from $70.1 million in the same quarter last year.
Despite the strong performance in the fourth quarter, the company's stock fell approximately 4% as the future guidance provided by management was softer than expected. For the first quarter of 2024, The Hackett Group anticipates adjusted EPS to be between $0.36 and $0.39, which at the midpoint is below the analyst consensus of $0.39.
Moreover, the company estimates that revenue before reimbursements will range from $72.5 million to $74.0 million, with the midpoint falling short of the consensus estimate of $74.81 million.
Chairman & CEO Ted A. Fernandez commented on the results, stating, "We reported solid operating results which exceeded our previously provided guidance while continuing our investment in program development and sales resources in our recurring high margin IP and AI offerings." He also highlighted the positive reception of their new generative artificial intelligence platform, AI XPLR, and its contribution to a significant number of client meetings.
The company's financial health appears robust, with cash flow from operations at $25.6 million for the fourth quarter of 2023, up from $24.8 million in the previous year. Additionally, The Hackett Group paid down $11.0 million of its debt balance and declared a first-quarter 2024 dividend of $0.11 per share.
Investors reacted to the earnings report with caution, focusing on the forward-looking guidance rather than the quarter's outperformance. The softer guidance for the upcoming quarter suggests potential challenges ahead, despite the company's strong finish to the previous year.
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