2
23
2010
»Huron Profits Up in 2009, Revenue Forecast Flat
Huron Consulting Group announced better than expected profits on Tuesday, exceeding analysts’ expectations. But its modest revenue expectations for 2010 sent its stock price falling by more than 10 percent.
Excluding business units it has already sold off, Huron’s generated almost $629 million in revenue in 2009, up almost 10 percent from 2008. But the firm expects little to no revenue growth in 2010, setting expectations between $600 million and $640 million. Part of the weak top line will be caused by the planned sale of its operations in Japan, which it hopes to complete by the middle of the year.
"2010 will be a challenging year for many consulting firms, and Huron is no exception,” CEO John Roth told investors. “Our strategic focus on our core service lines, all of which have enviable market share, has positioned us to look forward with confidence in our market relevance and capabilities, but cautiously with respect to market conditions.”
Lost in the cautious forecast are impressive financial results for 2010. Despite one of the most difficult economies in decades, and a financial scandal that lead to the resignation of the firm’s leaders and questions about the firm’s future, Huron’s 2009 results are remarkable. The firm increased its average number of full-time billable consultants by almost eight percent in 2009, up to1,386. Despite the rise in number of consultants, the firm was able to increase its average utilization rate from 67.7 percent to 68.5 percent and increased its average hourly bill rate from $260/hour to $270/hour.
Coming next month in Consulting, a roundup of other leading public consulting firms' financial forecasts.
