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Hackett Group Inc

Hackett Group Inc

HCKT
$10.98USD↑+0.37%+0.04 today

MARKET CAP

273.2M

P/E (TTM)

7.5x

FWD P/E

7.0x

DAY RANGE

$11 – $11

52W RANGE

$9
$21

AI Summary

Stalk
TrimMedium

HCKT remains in a sustained Stage 4 decline with a clear lower-highs/lower-lows regime below all declining EMAs. Medium-term directional bias is Bearish as EMAs continue to cap rallies and no inflection patterns are present. Short-term timing is Neutral, with recent rejection into moving averages offering no immediate sell trigger. Execution should be deferred until rallies into EMA resistance zones for trimming on strength.

  • ↑Q2 revenue $68.3M (+0.7% sequential), gross margin 44.1%
  • ↑Adjusted EPS $0.34; Q3 guidance $0.37–$0.39 reflects ~11.8% uplift
  • ↓Negative growth metrics; revenue slipped in SMBT and Oracle segments
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

The Hackett Group, Inc. (NASDAQ: HCKT) is a leading global strategy and operations consulting firm specializing in management consulting, benchmarking, and advisory services. The company operates in an evolving digital transformation space, leveraging generative AI and strategic partnerships, including a recent collaboration with IBM, to enhance its offerings. As Hackett transitions from traditional consulting services to an AI-enabled platform model, it aims to capitalize on the growing demand for AI-driven solutions across various sectors.

Bull says

  • ↑Q2 revenue $68.3M (+0.7% sequential), gross margin 44.1%
  • ↑Adjusted EPS $0.34; Q3 guidance $0.37–$0.39 reflects ~11.8% uplift
  • ↑$15.2M Q2 ops cash flow; net debt down $6.1M; $4M share buybacks; dividend support
  • ↑Secured $30M in new proposals; partnerships with IBM, ServiceNow, Genpact
  • ↑Transitioning to AI-enabled platform to boost delivery and client engagement
  • ↑High earnings yield and solid dividend yield underpin shareholder returns

Bear says

  • ↓Negative growth metrics; revenue slipped in SMBT and Oracle segments
  • ↓Clients are pausing extended AI initiatives, delaying project ramp-up
  • ↓Low-cost competitors exert pricing pressure, limiting margin gains
  • ↓High short interest indicates investor skepticism and stock volatility
  • ↓Weak profitability and momentum factors weigh on financial quality
  • ↓Transition costs and potential anti-transition charges could strain cash flow

Earnings Call · Q1 2024 · Mgmt. Guidance

Updated 05-07-2025bullish

Transcript signals

Bull points

  • we reported total revenues of $77.2 million and revenues before reimbursements of $75.7 million, which is above the high end of our guidance and adjusted earnings per share of $0.39, which was at the high end of our guidance.
  • A new important development is the notable increase in the demand that we're experiencing in our historically strong Enterprise Performance Management or EPM offerings.
  • we are experiencing the significant opportunity that comes from the unlimited transformational use cases that Gen AI initiatives will offer.

Bear points

  • Our Global SBT segment was down 3% when compared to last year, as we see economic headwinds continued resulting in extended decision-making. This has been particularly noticeable in the eProcurement area.
  • Although the revenue impact in Q1 from AI Explorer was nominal, we expect these engagements to increase in number and scope throughout the second quarter.
Read full transcript analysis ›