Huron Consulting Group Inc. Just Beat EPS By 19%: Here's What Analysts Think Will Happen Next

It's been a good week for Huron Consulting Group Inc. (NASDAQ:HURN) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.8% to US$141. Revenues were US$396m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$1.33 were also better than expected, beating analyst predictions by 19%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Huron Consulting Group after the latest results.

We've discovered 2 warning signs about Huron Consulting Group. View them for free.

Taking into account the latest results, the current consensus from Huron Consulting Group's five analysts is for revenues of US$1.62b in 2025. This would reflect an okay 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to fall 14% to US$6.61 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.62b and earnings per share (EPS) of US$7.03 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Huron Consulting Group

The consensus price target held steady at US$171, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Huron Consulting Group, with the most bullish analyst valuing it at US$180 and the most bearish at US$165 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Huron Consulting Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.9% annually. So it's pretty clear that, while Huron Consulting Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Huron Consulting Group. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$171, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Huron Consulting Group going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Huron Consulting Group .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.