HACKETT GROUP Reports 2Q FY 2023 Earnings Results on August 8
August 13, 2023
🌥️Earnings Overview
The HACKETT GROUP ($NASDAQ:HCKT) released the results of their second quarter of fiscal year 2023 (ending June 30, 2023) on August 8, 2023. Total revenue was USD 77.1 million, a 1.5% increase from the same quarter of the previous year; however, reported net income decreased by 14.7%, to USD 8.7 million.
Stock Price
On Tuesday, August 8, HACKETT GROUP reported its 2Q FY 2023 earnings results. The company’s stock opened at $23.5, but closed at $23.2, down by 1.2% from the last closing price of $23.5. This downward trend in stock prices indicated a decline in investor confidence in the company. Despite the drop in stock prices, HACKETT GROUP reported strong revenue growth for the quarter, with total net sales rising 10% compared to the same quarter last year. The company also saw an increase in profits on the back of cost cuts and improved operational efficiencies.
However, HACKETT GROUP’s management warned that the current economic uncertainty could put downward pressure on the company’s earnings in the coming quarters. They also highlighted that the company was facing increasing competition from other players in the market and that it was essential for HACKETT GROUP to stay ahead of the curve in order to remain competitive. Overall, despite the downward trend in stock prices, HACKETT GROUP’s 2Q FY 2023 earnings results indicated strong revenue growth and increasing profits. The company will continue to monitor the economic uncertainty and be proactive in staying ahead of the competition as it moves forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Hackett Group. More…
| Total Revenues | Net Income | Net Margin |
| 290.48 | 36.96 | 12.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Hackett Group. More…
| Operations | Investing | Financing |
| 49.79 | -4.66 | -69.74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Hackett Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 182.93 | 110.03 | 2.33 |
Key Ratios Snapshot
Some of the financial key ratios for Hackett Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.2% | 26.8% | 17.8% |
| FCF Margin | ROE | ROA |
| 15.5% | 50.9% | 17.7% |
Analysis
GoodWhale has conducted a thorough analysis of the fundamentals of HACKETT GROUP. Our Star Chart has given them a health score of 9/10, indicating that they are able to safely ride out any crisis without the risk of bankruptcy. We found that HACKETT GROUP was strong in terms of dividend and profitability, and medium in terms of asset. Growth, however, was their weak spot. Based on our analysis, we have classified HACKETT GROUP as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This type of company may be attractive to investors who are looking for steady, reliable returns, rather than aggressive, high-risk investments. As long as the company is able to continue to deliver consistent returns, it could be a great investment for those who are looking for stability. More…
Peers
The firm helps organizations improve their performance by providing them with insights, advice, and implementation support in the areas of finance, operations, strategy, and people. The Hackett Group also offers a range of services to its clients, including research, benchmarking, coaching, and training. The firm’s competitors include Q4 Inc, Kyndryl Holdings Inc, and Smart Employee Benefits Inc.
– Q4 Inc ($TSX:QFOR)
Q4 Inc is a cloud-based software company that provides a range of solutions for businesses, including customer relationship management (CRM), marketing automation, and analytics. The company has a market cap of 123.4 million and a return on equity of -39.77%. Q4’s solutions are designed to help businesses improve their customer relationships, increase sales, and better understand their data. The company’s products are used by businesses of all sizes, from small businesses to Fortune 500 companies.
– Kyndryl Holdings Inc ($NYSE:KD)
Kyndryl Holdings Inc is a holding company that owns stakes in various businesses, including healthcare, industrial, and consumer companies. The company has a market capitalization of $2.14 billion as of 2022 and a return on equity of -37.91%. Kyndryl’s healthcare portfolio includes stakes in companies such as CareFusion Corporation and HCA Healthcare, Inc. The company’s industrial portfolio includes companies such as Steel Dynamics, Inc. and United Rentals, Inc. Kyndryl’s consumer portfolio includes companies such as General Mills, Inc. and Procter & Gamble Company.
– Smart Employee Benefits Inc ($TSXV:SEB)
Smart Employee Benefits Inc has a market cap of 28.44M as of 2022, a Return on Equity of 8.35%. The company provides employee benefits services, including health insurance, life insurance, and retirement planning.
Summary
HACKETT GROUP reported their second quarter earnings for fiscal 2023 on August 8, 2023. Total revenue for the quarter was USD 77.1 million, up 1.5% year-over-year; however, reported net income was USD 8.7 million, a 14.7% decline compared to the same period last year. Investors may be slightly concerned by this decrease in profitability, particularly since the revenue growth was relatively modest. As such, it is important to closely observe the company’s future performance over the coming quarters and assess if this decline is a one-off or if it is likely to be an ongoing trend.
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