The Hackett Group, Inc. (NASDAQ: HCKT) had a successful 2Q2016 in which both earnings and revenue beat expectations. But the company attained other milestones beyond pure earnings improvement. As an investor it is a great thing to know what else Hackett achieved in the just reported quarter.
Hackett Group, Inc. (NASDAQ: HCKT) took the opportunity to remove some of its shares from public hands. The company repurchased 1.8 million of its common stock shares at an average price of $14.72. Hackett sank $25.8 million into the stock repurchase program.
The reason Hackett decided to buy back some of its shares was that the management felt the shares are undervalued. In addition, the repurchase should boost EPS and the stock price, thus generating more benefits for shareholders.
Hackett has not exhausted its buyback budget as it still has almost $4.9 million left that it could use to repurchase more shares in the future.
Although Hackett Group, Inc. (NASDAQ: HCKT) withdrew $25 million from its amended loan facility to use for the buyback, the company also managed to repay some of its debt during the latest quarter. It used $3 million to pay down its borrowing in 2Q2016.
But Hackett Group, Inc. (NASDAQ: HCKT) is not broke because it used some cash to buy back shares and pay down its borrowing. The company exited the latest quarter with cash balance totaling $15.6 million.
Hackett’s CEO Ted A. Fernandez revealed that the strong results reported in 2Q were supported by solid demand for their enterprise analytics and digital business transformation services. He said that his team is looking to build on that strength to drive more growth.
2Q2016 earnings highlight – Hackett Group, Inc. (NASDAQ: HCKT)
Hackett Group, Inc. (NASDAQ: HCKT) generated revenue of $75.6 million in 2Q2016, indicating an increase of 14% YoY. The revenue figure also outpaced the consensus estimate the called for revenue of $72.08 million.
The company posted EPS of $0.24, an increase of 26% YoY and above the consensus estimate of $0.22.
For the current quarter (3Q2016), Hackett Group, Inc. (NASDAQ: HCKT) is looking for revenue in the band of $72 to $74 million, against the consensus estimate of $71.8 million. EPS is expected in the band of $0.22 to $0.24, which compared with the consensus estimate of $0.22.