Updated from 2:34 p.m. EDT
Executive search firm
Heidrick & Struggles International
Tuesday said that it expects to beat analysts' second-quarter earnings estimates because strength in the market for top executives helped to increase revenue an estimated 40%.
The Chicago-based search firm said it expects second-quarter earnings of around 45 cents a diluted share, compared with analysts' expectations of 38 cents a share, according to
First Call/Thomson Financial
. Revenue for the quarter is expected to rise 40% from the year-ago $113 million.
The company said booming global demand at the top of the labor chain has helped to strengthen its business.
"Demand for executive talent continues to be extraordinary around the world, and our teams are working at full capacity," said Patrick Pittard, chairman, president and chief executive of Heidrick & Struggles.
He noted that as revenue rises, the company is moving forward with growth initiatives, including Internet-based services, "in order to better prepare us as we continue to grow faster than the industry."
The raised earnings estimate was the latest in a series of positive news developments about the company.
"The second quarter will mark the fifth consecutive quarter of upside surprise since the company's initial public offering in April last year," said Mark W. Allen, analyst at
. "We believe a premium valuation is warranted given the opportunity for positive earnings surprises and accretive acquisitions." Robinson-Humphrey rates the company's stock a buy and has underwritten stock offerings.
Heidrick & Struggles finished up 2 1/4, or 4%, at 60 1/8.
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