Hudson Global (HSON) Tops Q4 EPS by 6c

Hudson Global (NASDAQ: HSON) reported Q4 EPS of ($0.11), $0.06 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $136.7 million versus the consensus estimate of $141.9 million.

Strategic Actions

The company's strategic actions are focused on driving consistent, sustainable growth and profitability. To accelerate the implementation of the company's strategy, we have engaged in the following initiatives:

• Investing in the core businesses and practices that present the greatest potential for profitable growth.
• Further improving the company's cost structure and efficiency of its support functions and infrastructure.
• Building and differentiating the company's brand through its unique talent solutions offerings.

During the fourth quarter, the company continued to implement its strategy narrowing its focus on core businesses by divesting its Legal eDiscovery business. To better align the organization model and support profitable growth in core areas, the company continued driving cost reductions in the expense base, particularly in support and real estate, based on the recommendations of AlixPartners, LLP. The Hudson Board of Directors has approved restructuring charges of up to $11.1 million to be taken by the third quarter of 2015. This includes $4.1 million approved in December 2014 for real estate optimization costs, including real estate related to the company's former Legal eDiscovery business. During the fourth quarter the company incurred restructuring charges in continuing operations totaling $1.8 million for headcount reductions primarily in Europe and Corporate, and $2.3 million in discontinued operations primarily related to real estate exit costs. The company expects an ongoing annualized return of 1.5 to 2x on continuing operations charges.

The company also made investments in core markets to drive profitable growth, expanding consultant headcount by 14 percent during 2014. The productivity of new hires gradually increased during 2014 and is expected to continue improving in 2015.

For earnings history and earnings-related data on Hudson Global (HSON) click here.

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