Recent Insider Transactions • May 22
CEO & Director recently bought US$189k worth of stock On the 21st of May, Jeffrey Eberwein bought around 18k shares on-market at roughly US$10.28 per share. This transaction amounted to 1.8% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jeffrey has been a buyer over the last 12 months, purchasing a net total of US$4.3m worth in shares. Reported Earnings • May 13
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: US$1.17 loss per share (further deteriorated from US$0.59 loss in 1Q 2025). Revenue: US$50.1m (up 57% from 1Q 2025). Net loss: US$4.39m (loss widened 150% from 1Q 2025). Revenue missed analyst estimates by 4.8%. Earnings per share (EPS) also missed analyst estimates significantly. Revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 6.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 79 percentage points per year, which is a significant difference in performance. New Risk • May 13
New major risk - Revenue and earnings growth Earnings have declined by 56% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 56% per year over the past 5 years. Shareholders have been substantially diluted in the past year (35% increase in shares outstanding). Minor Risk Market cap is less than US$100m (US$35.1m market cap). Announcement • May 04
Star Equity Holdings, Inc., Annual General Meeting, May 27, 2026 Star Equity Holdings, Inc., Annual General Meeting, May 27, 2026. Location: at the offices of the company, located at 53 forest avenue, suite 101, old greenwich, connecticut 06870, United States Price Target Changed • Mar 23
Price target increased by 12% to US$19.00 Up from US$17.00, the current price target is an average from 3 analysts. New target price is 96% above last closing price of US$9.69. Stock is down 11% over the past year. The company is forecast to post earnings per share of US$0.25 next year compared to a net loss per share of US$2.08 last year. Reported Earnings • Mar 23
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: US$2.08 loss per share (further deteriorated from US$1.59 loss in FY 2024). Revenue: US$172.2m (up 23% from FY 2024). Net loss: US$6.66m (loss widened 40% from FY 2024). Revenue missed analyst estimates by 1.3%. Earnings per share (EPS) also missed analyst estimates by 132%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 85 percentage points per year, which is a significant difference in performance. New Risk • Mar 22
New major risk - Revenue and earnings growth Earnings have declined by 44% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Earnings have declined by 44% per year over the past 5 years. Shareholders have been substantially diluted in the past year (37% increase in shares outstanding). Minor Risk Market cap is less than US$100m (US$35.0m market cap). New Risk • Mar 19
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 37% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risk Shareholders have been substantially diluted in the past year (37% increase in shares outstanding). Minor Risk Market cap is less than US$100m (US$36.0m market cap). Announcement • Mar 14
Star Equity Holdings, Inc. to Report Q4, 2025 Results on Mar 17, 2026 Star Equity Holdings, Inc. announced that they will report Q4, 2025 results at 4:00 PM, US Eastern Standard Time on Mar 17, 2026 Recent Insider Transactions • Dec 31
CEO & Director recently bought US$109k worth of stock On the 29th of December, Jeffrey Eberwein bought around 10k shares on-market at roughly US$11.25 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$3.0m. Jeffrey has been a buyer over the last 12 months, purchasing a net total of US$4.0m worth in shares. Recent Insider Transactions • Dec 12
CEO & Director recently bought US$3.0m worth of stock On the 8th of December, Jeffrey Eberwein bought around 288k shares on-market at roughly US$10.43 per share. This transaction amounted to 78% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jeffrey has been a buyer over the last 12 months, purchasing a net total of US$3.9m worth in shares. Recent Insider Transactions • Nov 21
CEO & Director recently bought US$214k worth of stock On the 19th of November, Jeffrey Eberwein bought around 21k shares on-market at roughly US$10.31 per share. This transaction amounted to 6.0% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$345k. Jeffrey has been a buyer over the last 12 months, purchasing a net total of US$934k worth in shares. Reported Earnings • Nov 16
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: US$0.56 loss per share (further deteriorated from US$0.28 loss in 3Q 2024). Revenue: US$48.0m (up 30% from 3Q 2024). Net loss: US$1.83m (loss widened 116% from 3Q 2024). Revenue exceeded analyst estimates by 5.0%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 43% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 94 percentage points per year, which is a significant difference in performance. New Risk • Nov 14
New major risk - Revenue and earnings growth Earnings have declined by 32% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 32% per year over the past 5 years. Minor Risks Shareholders have been diluted in the past year (28% increase in shares outstanding). Market cap is less than US$100m (US$35.3m market cap). Announcement • Nov 07
Star Equity Holdings, Inc. to Report Q3, 2025 Results on Nov 13, 2025 Star Equity Holdings, Inc. announced that they will report Q3, 2025 results Pre-Market on Nov 13, 2025 Recent Insider Transactions • Sep 19
CEO & Director recently bought US$345k worth of stock On the 17th of September, Jeffrey Eberwein bought around 34k shares on-market at roughly US$10.20 per share. This transaction amounted to 12% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Jeffrey has been a buyer over the last 12 months, purchasing a net total of US$347k worth in shares. Announcement • Sep 10
Star Equity Holdings, Inc. (NasdaqGS:STRR) announces an Equity Buyback for $3 million worth of its shares. Star Equity Holdings, Inc. (NasdaqGS:STRR) announces a share repurchase program. Under the program, the company will repurchase up to $3 million worth of its shares. New Risk • Aug 24
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 27% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Shareholders have been diluted in the past year (27% increase in shares outstanding). Market cap is less than US$100m (US$32.0m market cap). Reported Earnings • Aug 11
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: US$0.23 loss per share (further deteriorated from US$0.15 loss in 2Q 2024). Revenue: US$35.5m (flat on 2Q 2024). Net loss: US$688.0k (loss widened 56% from 2Q 2024). Revenue exceeded analyst estimates by 3.4%. Earnings per share (EPS) missed analyst estimates. Revenue is forecast to grow 5.8% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. New Risk • Aug 10
New major risk - Revenue and earnings growth Earnings have declined by 23% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 23% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$25.0m market cap). Announcement • Aug 01
Hudson Global, Inc. Appoints Crystal McKinsey as Global Head of Marketing Hudson Global, Inc. (Hudson RPO) announced August 1, 2025, the strategic integration of McKinsey CMO Group (CMRG). As part of the integration, Crystal McKinsey, Founder & CEO of CMRG, will join Hudson RPO as the Global Head of Marketing. In this role, she will lead the Company’s global marketing efforts and enhance Hudson RPO’s capabilities in talent attraction, employer branding, and candidate engagement. Announcement • Jul 30
Hudson Global, Inc. to Report Q2, 2025 Results on Aug 08, 2025 Hudson Global, Inc. announced that they will report Q2, 2025 results Pre-Market on Aug 08, 2025 Announcement • Jul 18
Hudson Global, Inc., Annual General Meeting, Aug 21, 2025 Hudson Global, Inc., Annual General Meeting, Aug 21, 2025. Location: 53 forest avenue, suite 102 old greenwich, ct 06870., United States Announcement • May 22
Hudson Global, Inc. (NasdaqGS:HSON) signed a definitive merger agreement to acquire Star Equity Holdings, Inc. (NasdaqGM:STRR). Hudson Global, Inc. (NasdaqGS:HSON) signed a definitive merger agreement to acquire Star Equity Holdings, Inc. (NasdaqGM:STRR) on May 21, 2025. The Merger will be a stock-for-stock transaction. Hudson will acquire all the outstanding common and preferred shares of Star, issuing 0.23 shares of HSON common stock for each share of STRR common stock, approximately in line with the 20-day VWAP trading ratio between the two stocks. Hudson will issue preferred stock with identical terms to Star’s preferred stock to be exchanged on a one-for-one basis. Upon completion of the Merger, Hudson shareholders will own approximately 79% of NewCo, and Star shareholders will own approximately 21% of NewCo’s estimated 3.49 million shares outstanding. Star will merge with and into a wholly owned subsidiary of Hudson, and Hudson will be the surviving public entity. Star may be required to pay Hudson a termination fee of $0.25 million and Hudson may be required to pay Star a termination fee of $0.25 million.
The NewCo goal is of $40 million in Adjusted EBITDA by 2030. Following the completion of the Merger, NewCo will have four reporting segments: Building Solutions (consisting of KBS Builders, EdgeBuilder-Glenbrook, and Timber Technologies), Business Services (Hudson RPO), Energy Services (Alliance Drilling Tools), and Investments. The Merger is expected to have no impact on clients, employees, or the brand names of any of NewCo’s operating businesses. NewCo’s board of directors is expected to be composed of the three independent directors from each of Hudson and Star, as well as Jeff Eberwein. NewCo management will include Jeff Eberwein as Chief Executive Officer and Rick Coleman as Chef Operating Officer.
Pending regulatory and shareholder approvals, the Merger is anticipated to close in the second half of 2025. Prior to signing this Merger agreement, both Companies’ Boards of Directors established independent special committees to evaluate the benefits of the potential Merger. While the terms of the Merger have been approved by both special committees and each of the Companies’ respective Boards of Directors, closing is subject to regulatory approvals, Nasdaq’s approval of the listing of the shares of Hudson common stock and preferred stock to be issued in connection with the Merger, the effectiveness of the Registration Statement as well as the affirmative votes of Hudson and Star shareholders at their respective shareholder meetings to be held later this year. The Boards of Directors of Hudson and Star have recommended that the respective shareholders of HSON and STRR vote FOR the Merger at these meetings.
Oberon Securities acted as financial advisor, provided fairness opinion and Martin W. Enright of Littman Krooks acted as legal advisor to Star’s special committee. Houlihan Lokey acted as financial advisor and provided fairness opinion to and Benjamin R. Wills of Morgan Lewis acted as legal advisor to Hudson’s special committee. Adam W. Finerman of Baker & Hostetler LLP acted as legal advisor to Hudson. Reported Earnings • May 14
First quarter 2025 earnings: EPS and revenues miss analyst expectations First quarter 2025 results: US$0.59 loss per share (improved from US$0.95 loss in 1Q 2024). Revenue: US$31.9m (down 6.0% from 1Q 2024). Net loss: US$1.76m (loss narrowed 39% from 1Q 2024). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates significantly. Revenue is forecast to grow 4.8% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. New Risk • May 14
New major risk - Revenue and earnings growth Earnings have declined by 12% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 12% per year over the past 5 years. Minor Risk Market cap is less than US$100m (US$27.5m market cap). Announcement • May 07
Hudson Global, Inc. to Report Q1, 2025 Results on May 13, 2025 Hudson Global, Inc. announced that they will report Q1, 2025 results Pre-Market on May 13, 2025 Major Estimate Revision • Mar 19
Consensus revenue estimates fall by 11% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from US$156.3m to US$138.9m. Forecast loss of -US$0.13, down from profit of US$0.63 per share profit previously. Professional Services industry in the US expected to see average net income growth of 17% next year. Consensus price target down from US$22.00 to US$19.00. Share price was steady at US$10.27 over the past week. Reported Earnings • Mar 14
Full year 2024 earnings: EPS and revenues miss analyst expectations Full year 2024 results: US$1.59 loss per share (down from US$0.72 profit in FY 2023). Revenue: US$140.1m (down 13% from FY 2023). Net loss: US$4.77m (down 317% from profit in FY 2023). Revenue missed analyst estimates by 2.5%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. Announcement • Mar 07
Hudson Global, Inc. to Report Q4, 2024 Results on Mar 14, 2025 Hudson Global, Inc. announced that they will report Q4, 2024 results Pre-Market on Mar 14, 2025 Reported Earnings • Nov 14
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: US$0.28 loss per share (down from US$0.17 profit in 3Q 2023). Revenue: US$36.9m (down 6.5% from 3Q 2023). Net loss: US$846.0k (down 259% from profit in 3Q 2023). Revenue missed analyst estimates by 19%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 5.8% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 50 percentage points per year, which is a significant difference in performance. Announcement • Oct 31
Hudson Global, Inc. to Report Q3, 2024 Results on Nov 12, 2024 Hudson Global, Inc. announced that they will report Q3, 2024 results Pre-Market on Nov 12, 2024 Reported Earnings • Aug 09
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: US$0.15 loss per share (down from US$0.19 profit in 2Q 2023). Revenue: US$35.7m (down 21% from 2Q 2023). Net loss: US$441.0k (down 176% from profit in 2Q 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) missed analyst estimates by 114%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Announcement • Aug 01
Hudson Global, Inc. to Report Q2, 2024 Results on Aug 08, 2024 Hudson Global, Inc. announced that they will report Q2, 2024 results Pre-Market on Aug 08, 2024 Announcement • Jul 02
Hudson Global, Inc., Annual General Meeting, Jul 31, 2024 Hudson Global, Inc., Annual General Meeting, Jul 31, 2024. Location: 53 forest avenue, suite 102, connecticut 0687, old greenwich United States Reported Earnings • May 11
First quarter 2024 earnings released: US$0.95 loss per share (vs US$0.12 profit in 1Q 2023) First quarter 2024 results: US$0.95 loss per share (down from US$0.12 profit in 1Q 2023). Revenue: US$33.9m (down 21% from 1Q 2023). Net loss: US$2.90m (down US$3.25m from profit in 1Q 2023). Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has fallen by 1% per year. Announcement • May 05
Hudson Global, Inc. to Report Q1, 2024 Results on May 10, 2024 Hudson Global, Inc. announced that they will report Q1, 2024 results Pre-Market on May 10, 2024 Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$17.70, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 22x in the Professional Services industry in the US. Total returns to shareholders of 4.5% over the past three years. Major Estimate Revision • Mar 21
Consensus EPS estimates fall by 25% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$172.0m to US$162.0m. EPS estimate also fell from US$1.18 per share to US$0.89 per share. Net income forecast to grow 26% next year vs 16% growth forecast for Professional Services industry in the US. Consensus price target down from US$31.00 to US$27.00. Share price rose 16% to US$17.70 over the past week. Reported Earnings • Mar 14
Full year 2023 earnings released: EPS: US$0.72 (vs US$2.37 in FY 2022) Full year 2023 results: EPS: US$0.72 (down from US$2.37 in FY 2022). Revenue: US$161.3m (down 20% from FY 2022). Net income: US$2.20m (down 69% from FY 2022). Profit margin: 1.4% (down from 3.5% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.6% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 32% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Mar 09
Hudson Global, Inc. to Report Q4, 2023 Results on Mar 14, 2024 Hudson Global, Inc. announced that they will report Q4, 2023 results at 9:30 AM, US Eastern Standard Time on Mar 14, 2024 Announcement • Nov 17
Hudson Global, Inc. Appoints Jacob “Jake” Zabkowicz as Global Chief Executive Officer of Hudson RPO Hudson RPO, a leading global total talent solutions company owned by Hudson Global, Inc. announced the appointment of Jacob “Jake” Zabkowicz as Global Chief Executive Officer, effective November 15, 2023. As Global CEO for Hudson RPO, Mr. Zabkowicz will lead the vision, strategy, and execution of Hudson RPO’s growth plan. Jeff Eberwein will remain Chief Executive Officer of Hudson Global, Inc. and will continue to focus on capital allocation, acquisitions, corporate strategy, and maximizing shareholder value. Mr. Zabkowicz, 41, is a seasoned, growth-minded executive who brings to Hudson RPO extensive global leadership as well as operational and business development experience in the talent acquisition industry. Most recently, he was Senior Vice President, Global RPO at Korn Ferry, where he was instrumental in building and growing the firm’s global RPO business during his 10-year tenure. Prior to his time at Korn Ferry RPO, Mr. Zabkowicz served as Director, Solution Design & Implementation at Pinstripe (now Cielo). Mr. Zabkowicz’s experience and insights have been quoted in publications including Bloomberg, Forbes, and USA Today. Reported Earnings • Nov 11
Third quarter 2023 earnings released: EPS: US$0.17 (vs US$0.32 in 3Q 2022) Third quarter 2023 results: EPS: US$0.17 (down from US$0.32 in 3Q 2022). Revenue: US$39.4m (down 19% from 3Q 2022). Net income: US$533.0k (down 44% from 3Q 2022). Profit margin: 1.4% (down from 2.0% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 54% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Nov 01
Hudson Global, Inc. to Report Q3, 2023 Results on Nov 10, 2023 Hudson Global, Inc. announced that they will report Q3, 2023 results Pre-Market on Nov 10, 2023 Announcement • Oct 06
Hudson Global, Inc., Annual General Meeting, Nov 02, 2023 Hudson Global, Inc., Annual General Meeting, Nov 02, 2023, at 12:00 Eastern Daylight. Location: at the offices of the Company located at 53 Forest Avenue Suite 102, Old Greenwich Connecticut United States Agenda: To elect four directors to hold office until the 2024 Annual Meeting of Stockholders and until their respective successors are duly elected and qualified; To approve, by advisory vote, the compensation of named executive officers as disclosed in the proxy statement; and to discuss other matters. Major Estimate Revision • Aug 17
Consensus EPS estimates fall by 24% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$195.8m to US$180.5m. EPS estimate also fell from US$1.68 per share to US$1.27 per share. Net income forecast to grow 196% next year vs 14% growth forecast for Professional Services industry in the US. Consensus price target down from US$40.00 to US$36.00. Share price rose 3.0% to US$21.38 over the past week. Price Target Changed • Aug 15
Price target decreased by 16% to US$36.00 Down from US$42.75, the current price target is provided by 1 analyst. New target price is 83% above last closing price of US$19.70. Stock is down 41% over the past year. The company is forecast to post earnings per share of US$1.27 for next year compared to US$2.37 last year. Announcement • Aug 11
Hudson Global, Inc. (NasdaqGS:HSON) announces an Equity Buyback for $5 million worth of its shares. Hudson Global, Inc. (NasdaqGS:HSON) announces a share repurchase program. Under the program, the company will repurchase up to $5 million worth of its shares. Reported Earnings • Aug 11
Second quarter 2023 earnings: EPS misses analyst expectations Second quarter 2023 results: EPS: US$0.19 (down from US$1.02 in 2Q 2022). Revenue: US$44.9m (down 21% from 2Q 2022). Net income: US$578.0k (down 81% from 2Q 2022). Profit margin: 1.3% (down from 5.5% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 18%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Announcement • Aug 10
Hudson Global, Inc. to Report Q2, 2023 Results on Aug 10, 2023 Hudson Global, Inc. announced that they will report Q2, 2023 results Pre-Market on Aug 10, 2023 Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to US$21.55, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 21x in the Professional Services industry in the US. Total returns to shareholders of 143% over the past three years. Major Estimate Revision • May 17
Consensus EPS estimates fall by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$199.8m to US$194.5m. EPS estimate also fell from US$2.39 per share to US$1.75 per share. Net income forecast to grow 47% next year vs 9.0% growth forecast for Professional Services industry in the US. Consensus price target down from US$42.75 to US$36.50. Share price fell 13% to US$19.30 over the past week. Reported Earnings • May 10
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: US$0.12 (down from US$1.02 in 1Q 2022). Revenue: US$43.1m (down 17% from 1Q 2022). Net income: US$354.0k (down 88% from 1Q 2022). Profit margin: 0.8% (down from 5.8% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 9.4%. Earnings per share (EPS) also missed analyst estimates by 76%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 90% per year but the company’s share price has only increased by 32% per year, which means it is significantly lagging earnings growth. Announcement • May 05
Hudson Global, Inc. to Report Q1, 2023 Results on May 10, 2023 Hudson Global, Inc. announced that they will report Q1, 2023 results Pre-Market on May 10, 2023 Reported Earnings • Apr 01
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: US$2.37 (up from US$1.11 in FY 2021). Revenue: US$200.9m (up 19% from FY 2021). Net income: US$7.13m (up 121% from FY 2021). Profit margin: 3.5% (up from 1.9% in FY 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.5%. Revenue is forecast to grow 5.9% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 107% per year but the company’s share price has only increased by 36% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Dec 01
Investor sentiment improved over the past week After last week's 17% share price gain to US$25.50, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 102% over the past three years. Major Estimate Revision • Nov 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$3.26 to US$2.14 per share. Revenue forecast steady at US$200.8m. Net income forecast to shrink 20% next year vs 5.2% growth forecast for Professional Services industry in the US . Consensus price target down from US$53.00 to US$43.00. Share price fell 36% to US$22.94 over the past week. Price Target Changed • Nov 16
Price target decreased to US$43.00 Down from US$53.00, the current price target is provided by 1 analyst. New target price is 81% above last closing price of US$23.71. Stock is down 20% over the past year. The company is forecast to post earnings per share of US$2.14 for next year compared to US$1.11 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 1 highly experienced director. Independent Chairman of the Board Mimi Drake was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 11
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: US$0.32 (down from US$0.51 in 3Q 2021). Revenue: US$48.7m (up 8.2% from 3Q 2021). Net income: US$955.0k (down 36% from 3Q 2021). Profit margin: 2.0% (down from 3.3% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.6%. Earnings per share (EPS) also missed analyst estimates by 58%. Revenue is forecast to grow 5.9% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Professional Services industry in the US. Over the last 3 years on average, earnings per share has increased by 120% per year but the company’s share price has only increased by 34% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 12
Second quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2022 results: EPS: US$1.02 (up from US$0.042 loss in 2Q 2021). Revenue: US$51.0m (up 28% from 2Q 2021). Net income: US$3.09m (up US$3.22m from 2Q 2021). Profit margin: 6.1% (up from net loss in 2Q 2021). The move to profitability was driven by higher revenue. Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) exceeded analyst estimates by 2.1%. Over the next year, revenue is forecast to grow 6.0%, compared to a 7.0% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 125% per year but the company’s share price has only increased by 37% per year, which means it is significantly lagging earnings growth. Seeking Alpha • Aug 02
Hudson Global's Financial Results Are Improving Rapidly In 2022 And I'm Bullish The company has been cutting costs for years and is finally in the black thanks to a tight labor market after the lifting of COVID-19 restrictions across the world.
Hudson Global’s adjusted net revenue rose by 107% year-over-year in constant currency in Q1 2022 while its net income stood at $3.02 million.
Considering this is usually the weakest quarter of the year for the company, I think EBITDA for 2022 could surpass $20 million.
Hudson Global can now take advantage of its $340 million net operating loss carryforward in the USA, which could save about $66 million in taxes in the future.
Introduction
On July 27, I wrote a SA article about international executive search firm Heidrick & Struggles International (NASDAQ:HSII), in which I said it looked undervalued. I’ve been looking at other companies in this sector and one that also seems cheap to me is Hudson Global (HSON). It’s a total talent solutions provider that has a strong cash position and has reduced the number of its shares by 12% since the end of 2018. The company booked strong results in Q1 2022 and demand for its services is looking good. Let’s review.
Overview of the business and financials
Hudson Global was spun off from global employment website Monster.com in 2003 and it specializes in the provision of recruitment process outsourcing (RPO) permanent recruitment and contracting outsourced recruitment solutions. RPO includes the use of an external service provider to perform all or part of a recruitment process for a company.
Hudson Global
Hudson Global’s clients include mainly mid-to-large-cap multinational companies, and it currently has operations in 14 countries worldwide. Over half of its revenues are coming from Australia at the moment.
Hudson Global struggled financially during its first decade as an independent company until its current CEO Jeff Eberwein started investing in it and took the reins. He embarked on a cost-cutting plan that also involved eliminating cash compensation to the board. The reduction in corporate costs is still ongoing and this has resulted in a significant improvement in EBITDA margins over the past few years.
Hudson Global
Hudson Global
There is a strong labor market in the major developed countries at the moment and this is providing a boost to the financial results of Hudson Global. In 2021, the company returned to the black with a net income of $3.2 million and Q1 saw another significant improvement in the financial results. During the quarter, revenues soared by just over 50% and the net income came in at $3.02 million. Adjusted net revenue was $25.6 million, which was an increase of 107% year-over-year in constant currency. EBITDA, in turn, was $3.88 million.
Hudson Global
According to research from Staffing Industry Analysts, the global RPO market has annual revenues of around $5.8 billion which means that Hudson Global is a relatively large player in this sector. However, I don't think the company's size provides it with a meaningful advantage as there are dozens of companies of similar size that have the same offerings. It's a competitive market and I could find few rankings online that list Hudson Global among the top 10 recruitment process outsourcing firms in USA.
In November 2021, Hudson Global acquired Chicago-headquartered recruiting services provider Karani for $8.67 million. The latter serves mainly U.S.-based customers and employs about 560 people in India and another 120 people in the Philippines. However, the acquired company didn’t improve Hudson Global’s Q1 2022 results in a significant way as it contributed external revenue of only $2.57 million and a net income of $0.24 million for the quarter. In my view, Karani could help Hudson Global win new business in India and other markets in the future. However, looking at its financial results, it’s doesn't seem like a good purchase for the time being. In addition, I think that it's likely the company could find it tough to grow its revenues in the USA considering that there are several similar local companies that also rely on Indian labor, including Profit By RPO, and Collar Search. Overall, I'm not concerned that Hudson will continue to make unnecessary acquisitions but I'll watch their M&A activity carefully.
Hudson Global’s organic adjusted revenue growth was 86% in constant currency in Q1 2022, and the Americas business had a big part in the improvement of net income. It grew its revenue and adjusted net revenue by 220% and 226% in constant currency, respectively. The company said during its Q1 earnings call that business activity levels were strong in every region and that demand for its services remained robust. Considering that this is usually the weakest quarter of the year for Hudson Global, I think we can expect even stronger results in Q2 2022. However, it’s possible that growth rates and net income decline in the second half of the year as the world economy seems to be slowing down and this is likely to put pressure on the labor market in major developed countries.
Turning our attention to the balance sheet of Hudson Global, we can see that the company has an asset-light business model as cash and receivables accounted for over 75% of the asset base as of March 2022. The company had $19.2 million in cash and just $2 million in debts at the end of Q1 2022 which means that its enterprise value stands at only $61.8 million as of the time of writing.
Hudson Global
In addition, Hudson Global has a $340 million net operating loss (NOL) carryforward in the USA that could save it about $66 million in taxes in the future. This means that the company has an incentive to make investments and acquisitions in the country.
Hudson Global
Overall, I think Hudson Global is a company that has done a good job of cutting corporate costs and improving margins over the past few years and the economic recovery and tight labor markets after the lifting of COVID-19 restrictions across the world are boosting its revenues and profits. It can now finally take advantage of its NOL carryforward and Q2 financial results should be strong too. Considering Q1 is usually a weak quarter for the company, I think EBITDA for 2022 could surpass $20 million. If we assume that Hudson Global should be valued at a conservative EV/EBITDA multiple of about 5x, this gives us a share price of about $41.80. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment deteriorated over the past week After last week's 16% share price decline to US$32.57, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 16x in the Professional Services industry in the US. Total returns to shareholders of 169% over the past three years. Valuation Update With 7 Day Price Move • May 18
Investor sentiment improved over the past week After last week's 19% share price gain to US$39.52, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 17x in the Professional Services industry in the US. Total returns to shareholders of 191% over the past three years. Reported Earnings • May 11
First quarter 2022 earnings: EPS and revenues exceed analyst expectations First quarter 2022 results: EPS: US$1.02 (up from US$0.07 loss in 1Q 2021). Revenue: US$51.9m (up 51% from 1Q 2021). Net income: US$3.02m (up US$3.22m from 1Q 2021). Profit margin: 5.8% (up from net loss in 1Q 2021). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 9.3%. Earnings per share (EPS) also surpassed analyst estimates by 223%. Over the next year, revenue is forecast to grow 7.1%, compared to a 7.9% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 118% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Chairman of the Board Mimi Drake was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Chairman of the Board Mimi Drake was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Mar 13
Full year 2021 earnings: Revenues and EPS in line with analyst expectations Full year 2021 results: EPS: US$1.11 (up from US$0.43 loss in FY 2020). Revenue: US$169.2m (up 67% from FY 2020). Net income: US$3.23m (up US$4.47m from FY 2020). Profit margin: 1.9% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has only increased by 30% per year, which means it is significantly lagging earnings growth. Board Change • Mar 03
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 4 experienced directors. No highly experienced directors. Independent Chairman of the Board Mimi Drake was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Feb 01
Investor sentiment improved over the past week After last week's 18% share price gain to US$30.86, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 18x in the Professional Services industry in the US. Total returns to shareholders of 119% over the past three years. Valuation Update With 7 Day Price Move • Dec 24
Investor sentiment improved over the past week After last week's 21% share price gain to US$27.40, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 100% over the past three years. Valuation Update With 7 Day Price Move • Dec 06
Investor sentiment deteriorated over the past week After last week's 17% share price decline to US$24.75, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 19x in the Professional Services industry in the US. Total returns to shareholders of 71% over the past three years. Valuation Update With 7 Day Price Move • Nov 12
Investor sentiment improved over the past week After last week's 35% share price gain to US$24.88, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 21x in the Professional Services industry in the US. Total returns to shareholders of 72% over the past three years. Reported Earnings • Nov 06
Third quarter 2021 earnings released: EPS US$0.51 (vs US$0.41 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$45.0m (up 77% from 3Q 2020). Net income: US$1.49m (up US$2.65m from 3Q 2020). Profit margin: 3.3% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 09
Second quarter 2021 earnings released: US$0.042 loss per share (vs US$0.27 loss in 2Q 2020) The company reported a solid second quarter result with reduced losses, improved revenues and improved control over expenses. Second quarter 2021 results: Revenue: US$39.7m (up 62% from 2Q 2020). Net loss: US$122.0k (loss narrowed 84% from 2Q 2020). Over the last 3 years on average, earnings per share has increased by 82% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Price Target Changed • Jun 28
Price target increased to US$27.00 Up from US$23.00, the current price target is provided by 1 analyst. New target price is 44% above last closing price of US$18.69. Stock is up 123% over the past year.