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Huron Consulting (HURN) Q2 Earnings call transcript Jul 30, 2024

AInvestWednesday, Jul 31, 2024 4:04 pm ET
1min read

Huron Consulting Group, a leading provider of consulting services, has reported impressive financial results for the second quarter of 2024, marking a record-breaking performance. The company's revenues reached $371.7 million, a 7.2% increase from the previous year, driven by solid growth in its Healthcare and Education segments. Huron's adjusted EBITDA also expanded to 15%, with earnings per share reaching a record high of $2.03, demonstrating the company's strong execution and strategic focus.

During the earnings call, Huron's CEO, Mark Hussey, highlighted the company's strategic focus on driving sustainable revenue growth and expanding margins, emphasizing the positive impact of the changes made to its enterprise operating model. These changes have broadened the range of offerings Huron delivers to clients and improved operational efficiency.

In the Healthcare segment, revenues grew by 9%, with digital performance improvement, culture, and organizational excellence, and strategy and innovation offerings driving the growth. Despite the mixed operating environment for healthcare organizations, Huron's depth of industry expertise, broad array of offerings, and long track record of results have positioned the company well to provide strategic, operational, financial, and digital solutions to help clients navigate the challenges and opportunities in the healthcare market.

The Education segment also saw a robust 11% revenue growth, driven by increased demand for strategy and operations and digital product offerings. The company's strategic expansion of its portfolio of services and hiring of industry leaders has strengthened its position as the trusted adviser and partner of choice for higher education institutions.

While the Commercial segment experienced a 6% revenue decline, Huron remains optimistic about its long-term growth prospects. The company expects demand for digital and financial advisory offerings to return to historic levels as macroeconomic pressures ease. Huron's broad portfolio of digital, financial advisory, and strategy and innovation offerings, coupled with deep industry expertise, positions the company well for continued growth in this segment.

Looking ahead, Huron is narrowing its annual revenue guidance to $1.46 billion to $1.5 billion, with a raised adjusted EBITDA margin guidance of 13% to 13.5%. The company also raised its adjusted diluted earnings per share guidance to a range of $5.85 to $6.15, representing 22% growth over 2023.

Despite the softening demand for digital offerings in the Commercial segment, Huron remains confident in its ability to achieve its strategic and financial goals. The company's strong client relationships, industry expertise, and a balanced portfolio of offerings that address clients' complex challenges position Huron well for continued growth in the years ahead.

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