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Heidrick & Struggles (HSII) Q4 Earnings: What's in Store?

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Heidrick & Struggles International, Inc. (HSII - Free Report) will release fourth-quarter 2018 results on Feb 25, after the bell.

The stock has rallied 33.4% in the past year compared with the 4.4% rise of the industry it belongs to.

The company’s top line in the to-be-reported quarter is expected to benefit from strength in the Executive Search segment. Also, lower tax rate is likely to boost the bottom line.

Heidrick & Struggles is currently focusing on enhancing the scale and impact of its business segments, cross-enterprise collaboration between search and consulting, delivering a premium experience to clients and improving cost structure to increase profitability. The company is progressing well with these initiatives, which is likely to boost quarterly results.

Here are the expectations in detail.

Revenues to Increase Y/Y

The Zacks Consensus Estimate for total revenues in the to-be-reported quarter is pegged at $176 million, indicating year-over-year growth of 4.1%. The expected upside can be attributed to higher search confirmations, revenue per executive search and annualized productivity.

The Executive Search segment is likely to benefit from the adoption of ASU 2014-09 and strong performance across all regions as well as industry practices. However, the new revenue recognition standard will weigh on the Heidrick Consulting.

Heidrick & Struggles International, Inc. Revenue (TTM)



Lower Tax rate to Boost Bottom Line

The Zacks Consensus Estimate for total earnings in the to-be-reported quarter is pegged at $41 cents, which reflects year-over-year growth of more than 100%. This improvement is likely to be driven by lower tax rate as a result of U.S. Tax Reform Act and improving cost structure.

Zacks Rank & Upcoming Releases

Heidrick & Struggles has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 results from key players like Avis Budget (CAR - Free Report) , Green Dot (GDOT - Free Report) and Delphi Technologies (DLPH - Free Report) . While Avis Budget and Green Dot are scheduled to release results on Feb 20, Delphi Technologies is slated to announce the same on Feb 21.

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