The Hackett Group, Inc. (NASDAQ:HCKT) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, The Hackett Group, Inc. (NASDAQ:HCKT) just kicked off its latest third-quarter results with some very strong numbers. Results were good overall, with revenues beating analyst predictions by 4.2% to hit US$80m. Statutory earnings per share (EPS) came in at US$0.31, some 2.2% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Hackett Group

Taking into account the latest results, the current consensus from Hackett Group's two analysts is for revenues of US$325.6m in 2025. This would reflect a decent 8.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 17% to US$1.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$321.0m and earnings per share (EPS) of US$1.42 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$30.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Hackett Group's rate of growth is expected to accelerate meaningfully, with the forecast 6.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.1% 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You can also see whether Hackett Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.