Huron Consulting Group (HURN) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenues of $371.7M, up 7.2% year-over-year, driven by strong growth in Healthcare and Education segments, while Commercial declined.

• Net income rose 51.7% to $37.5M, with diluted EPS up 59.8% to $2.03, including an $11.1M after-tax litigation settlement gain.

• Adjusted diluted EPS reached $1.68, up 21.7% year-over-year, and record cash flow enabled debt reduction and share repurchases.

• Operating income rose 49.6% to $59.4M, with margin expanding to 16.0% from 11.5% year-over-year.

• Strategic focus remains on sustainable revenue growth, margin expansion, and disciplined capital deployment.

Financial highlights

• Q2 2024 revenues: $371.7M (+7.2% YoY); net income: $37.5M (+51.7% YoY); diluted EPS: $2.03 (+59.8% YoY).

• Adjusted EBITDA: $55.7M (15.0% margin) vs. $48.5M (14.0% margin) in Q2 2023.

• Year-to-date revenues: $727.6M (+9.5%); net income: $55.5M (+45.5%); diluted EPS: $2.96 (+51.8%).

• Record free cash flow: $98.2M in Q2 2024; net cash from operating activities reached $107.2M.

• Cash and equivalents at June 30, 2024: $17.6M; total debt: $511.6M.

Outlook and guidance

• 2024 revenue guidance narrowed to $1.46B–$1.50B, reflecting softness in commercial digital demand.

• 2024 adjusted EBITDA margin guidance raised to 13.0%–13.5%.

• 2024 adjusted diluted EPS guidance increased to $5.85–$6.15, midpoint up 22% over 2023.

• Healthcare expected to grow upper single to low double digits; education in low double digits; commercial flat year-over-year.

• Management focus on margin improvement, strategic acquisitions, and balanced capital allocation.