Heidrick & Struggles (NASDAQ: HSII) reported Q3 EPS of $0.39, $0.75 better than the analyst estimate of ($0.36). Revenue for the quarter came in at $144.5 million versus the consensus estimate of $125.23 million.

Highlights:

• Anticipated restructuring charge of $48.1 million generated operating loss of $38.2 million and operating margin of (26.6%); expect annual cost savings of $30 million to $40 million
• Adjusted operating income of $9.9 million and adjusted operating margin of 6.9%, up 70 basis points sequentially
• Net revenue of $143.5 million compares to $145.6 million in the 2020 second quarter
• Net loss of $26.2 million includes restructuring charge; adjusted net income of $7.7 million and adjusted diluted earnings per share of $0.39
• Maintains $0.15 per share cash dividend

"Our team did an excellent job delivering results in what continues to be a dynamic demand environment," stated Heidrick & Struggles' President and Chief Executive Officer, Krishnan Rajagopalan. "We remain focused on gaining market share and business trends continue to strengthen. We are especially pleased with the sequential growth generated by Heidrick Consulting, particularly in digital delivery related to leadership development and our diversity & inclusion initiatives. While economic visibility remains limited, we currently see an acceleration in our business and stronger business trends coming into focus. Importantly, we have the financial strength to continue making strategic investments to create long-term shareholder value, and our digital transformation is among multiple opportunities to fortify our position as a trusted global advisor."

GUIDANCE:

Heidrick & Struggles sees Q4 2020 revenue of $140-150 million, versus the consensus of $141.3 million.

For earnings history and earnings-related data on Heidrick & Struggles (HSII) click here.