Heidrick & Struggles International ( HSII) stumbled as the executive search and leadership consulting firm missed Wall Street's first-quarter earnings expectations. The Chicago-based company reported income of $5.9 million, or 30 cents a share, compared with $6.9 million, or 33 cents a share, a year ago. Revenue rose 2.9% to $101.5 million. Analysts polled by Thomson First Call were expecting earnings of 41 cents on revenue of $107.5 million. For 2006, the company reiterated its expectations of revenue between $445 million and $465 million, an 8% to 13% increase over 2005. Shares closed down $4.69, or 13.08%, to $31.16 Tuesday. Clayton Holdings ( CLAY) plummeted after the Shelton, Conn.-based financial services-outsourcing company posted a first-quarter loss of $800,000, or 6 cents a share, compared with income of $3.4 million, or 28 cents a share, a year ago. On a GAAP basis, the company reported a loss of $1.1 million, or 9 cents a share, compared with income of $1.9 million, or 16 cents a share, a year ago. Revenue increased 15.3% to $55.2 million. "The first quarter marked a significant milestone in Clayton's history with the completion of our initial public offering in March," CEO Frank Filipps said in a company statement. "As anticipated, the results for the first quarter of 2006 as compared to 2005 reflect the impact of increased infrastructure costs and the different debt and capital structures in place during the periods." Separately, the company has named D. Keith Johnson president and COO. Johnson had been president and CEO of Washington Mutual's ( WM) Long Beach Mortgage. Shares dropped $5.85, or 29.60%, to close at $15.90.