Heidrick & Struggles Posts Sharp 3Q Profit Decline

CHICAGO (AP) — Heidrick & Struggles International Inc. said Tuesday its third-quarter profit fell more than two-thirds as the executive staffing company continued to grapple with the recession's contracting labor force.

However, the Chicago company widely beat Wall Street expectations and guided to 2009 profit well above analysts' estimates. Its shares soared in afternoon trading.

Net income of $4.4 million, or 25 cents per share, slid 69 percent from $14 million, or 80 cents per share.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 8 cents per share.

Revenue of $108.3 million for the quarter ended Sept. 30 declined 35 percent from $165.3 million in the year-ago period.

Analysts expected revenue of 95.8 million.

"Although year-over-year comparisons still reflect the impact of a worldwide economic downturn, there are increasing signs that we've seen the bottom of this historic recession," said CEO L. Kevin Kelly.

Heidrick & Struggles said 2009 operating income, excluding restructuring and impairment charges, will be break-even, assuming revenue comes in at the high end of its guidance of between $389 million and $394 million.

Analysts expect a loss of 69 cents per share on revenue of $375 million.

Shares jumped $3.02, or 12 percent, to $28.41. Earlier in trading the stock set a 52-week high of $29.