On July 30, 2024, Huron Consulting Group Inc (HURN, Financial) released its 8-K filing for the second quarter of 2024. Huron Consulting Group Inc is a professional services firm that provides expertise in strategy, technology, operations, advisory services, and analytics through three operating segments: Healthcare, Education, and Business Advisory. The company generates a majority of its revenue from the Healthcare segment.
Q2 2024 Financial Highlights
Huron Consulting Group Inc reported a 7.2% increase in total revenues to $371.7 million for Q2 2024, compared to $346.8 million in Q2 2023. This figure, however, fell short of the analyst estimate of $374.31 million. Net income saw a significant rise of 51.7% to $37.5 million, up from $24.7 million in the same quarter last year. The results included an $11.1 million litigation settlement gain, net of tax.
Diluted earnings per share (EPS) increased by 59.8% to $2.03, surpassing the analyst estimate of $1.39. Adjusted diluted EPS, a non-GAAP measure, rose by 21.7% to $1.68 from $1.38 in Q2 2023.
Year-to-Date 2024 Highlights and Guidance
For the first six months of 2024, total revenues increased by 9.5% to $727.6 million, compared to $664.7 million for the same period in 2023. Net income for the first half of 2024 rose by 45.5% to $55.5 million, up from $38.1 million in the prior year period. Adjusted EBITDA increased by 14.8% to $89.5 million, and adjusted diluted EPS grew by 28.4% to $2.89.
Huron has updated its full-year 2024 earnings guidance, increasing its adjusted diluted EPS expectations to a range of $5.85 to $6.15, up from the previous estimate of $5.43.
Segment Performance and Key Metrics
The increase in revenues was driven by strong demand in the Healthcare and Education segments, particularly in Consulting and Managed Services. However, there was a noted decrease in demand for the Commercial segment's Digital capability.
Adjusted EBITDA for Q2 2024 increased by 14.9% to $55.7 million, compared to $48.5 million in Q2 2023. The number of revenue-generating professionals increased by 13.0% to 5,848 as of June 30, 2024, from 5,174 as of June 30, 2023. The utilization rate for the company's Consulting capability was 73.7%, down from 76.0% in the same period last year, while the Digital capability's utilization rate increased to 75.0% from 74.7%.
Financial Statements Overview
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $371.7 million | $346.8 million |
| Net Income | $37.5 million | $24.7 million |
| Diluted EPS | $2.03 | $1.27 |
| Adjusted EBITDA | $55.7 million | $48.5 million |
Management Commentary
"In the second quarter, we achieved record revenues, led by solid growth in our Healthcare and Education segments, and we continued to expand our margins. We are raising our full year 2024 earnings guidance, reflecting our first half performance and which continues our steady progress towards our financial goals," said Mark Hussey, chief executive officer and president of Huron.
Analysis and Outlook
Huron Consulting Group Inc's performance in Q2 2024 demonstrates robust growth in key segments, particularly Healthcare and Education. The company's ability to increase its net income and EPS significantly, despite missing revenue estimates, highlights its operational efficiency and effective cost management. The litigation settlement gain also provided a notable boost to the quarterly results.
Looking ahead, the updated earnings guidance and continued focus on high-demand segments position Huron Consulting Group Inc well for sustained growth. However, the decrease in demand for the Commercial segment's Digital capability and the slight drop in Consulting utilization rates are areas to monitor closely.
For more detailed insights and the full financial report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Huron Consulting Group Inc for further details.
