On February 20, 2024, The Hackett Group Inc (HCKT, Financial) released its 8-K filing, announcing financial results for the fourth quarter of 2023. The company, a leading advisory firm specializing in benchmarking, executive advisory, and strategic consultancy, reported a total revenue of $72.4 million for the quarter, a slight increase from $70.1 million in the same period last year. This performance exceeded the high end of the company's guidance, with revenue before reimbursements also showing growth from $68.8 million to $71.2 million year-over-year.
Adjusted diluted earnings per share (EPS) for the quarter was $0.39, surpassing the high end of HCKT's guidance and showing an improvement from $0.36 in Q4 2022. However, GAAP diluted EPS saw a decrease to $0.28, down from $0.31 in the prior year's quarter, influenced by a one-time legal settlement and related costs totaling $1.2 million. Despite this, cash flow from operations increased to $25.6 million, up from $24.8 million in the previous year.
The company's balance sheet reflects a solid financial position, with cash balances of $21.0 million and a significant paydown of $11.0 million in debt during the quarter. The Hackett Group's commitment to returning value to shareholders is evident in the declaration of a dividend for the first quarter of 2024, set at $0.11 per share.
Operational Highlights and Future Outlook
Chairman & CEO Ted A. Fernandez highlighted the company's solid operating results and investments in high-margin IP and AI offerings. The launch of the AI XPLR platform has been met with favorable feedback and is contributing to a growing number of client engagements. Looking ahead, The Hackett Group estimates that revenue before reimbursements for Q1 2024 will range between $72.5 million and $74.0 million, with adjusted diluted EPS projected to be between $0.36 and $0.39.
The company's performance is significant as it demonstrates resilience in a competitive advisory market, particularly within the realms of digital transformation and artificial intelligence. The Hackett Group's ability to exceed its financial guidance suggests a strong demand for its services and an effective strategy in place for growth and profitability.
Investors and stakeholders can anticipate continued focus on the company's strategic initiatives, particularly as it capitalizes on opportunities presented by its AI XPLR platform and other digital offerings. The Hackett Group's financial achievements and operational advancements position it well for sustained success in the evolving landscape of business consultancy and advisory services.
For more detailed financial information and future updates, interested parties are encouraged to join the conference call or access the webcast as detailed in the earnings release.
Explore the complete 8-K earnings release (here) from The Hackett Group Inc for further details.
