NEW YORK (
) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
Highlights from the ratings report include:
- HURN's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Compared to its closing price of one year ago, HURN's share price has jumped by 28.09%, exceeding the performance of the broader market during that same time frame. Although HURN had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- HURON CONSULTING GROUP INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HURON CONSULTING GROUP INC increased its bottom line by earning $0.96 versus $0.60 in the prior year. This year, the market expects an improvement in earnings ($2.06 versus $0.96).
- The gross profit margin for HURON CONSULTING GROUP INC is currently lower than what is desirable, coming in at 27.40%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.60% trails that of the industry average.
- Net operating cash flow has significantly decreased to -$12.55 million or 270.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
Huron Consulting Group Inc. provides operational and financial consulting services in the United States. The company has a P/E ratio of 46.7, above the average diversified services industry P/E ratio of 40.8 and above the S&P 500 P/E ratio of 17.7. Huron Consulting Group has a market cap of $889.9 million and is part of the
industry. Shares are down 8.1% year to date as of the close of trading on Friday.
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-- Written by a member of TheStreet Ratings Staff