The Hackett Group, Inc. (NASDAQ:HCKT) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week, you might have seen that The Hackett Group, Inc. (NASDAQ:HCKT) released its third-quarter result to the market. The early response was not positive, with shares down 8.6% to US$21.48 in the past week. Hackett Group reported US$76m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.34 beat expectations, being 4.6% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Hackett Group

Taking into account the latest results, the most recent consensus for Hackett Group from dual analysts is for revenues of US$306.8m in 2024. If met, it would imply a credible 6.2% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 5.9% to US$1.40. Before this earnings report, the analysts had been forecasting revenues of US$308.0m and earnings per share (EPS) of US$1.42 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.5% to US$27.00. It looks as though they previously had some doubts over whether the business would live up to their expectations.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Hackett Group's growth to accelerate, with the forecast 4.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.6% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Hackett Group is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hackett Group's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Hackett Group going out as far as 2024, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Hackett Group that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.