Huron Consulting (HURN -7.4%) announced preliminary unaudited financial guidance for FY2016 and FY2017.
FY2016Guidance: Revenues: $726.3M; Healthcare revenue: $424.9M; Education and Life Sciences revenue: $179M; Business Advisory revenue: $122.4M; Net income from continuing operations: $39.5M; Diluted EPS from continuing operations: $1.84. Adjusted EBITDA: $128.5M; Adjusted diluted EPS from continuing operations: $3.21.
FY2017 Guidance: Revenues: $750M to $790M; Net income: $18M to $25M; Diluted EPS: $0.85 to $1.15. Adjusted EBITDA: $112.5M to $124.5M; Adjusted net income: $52M to $59M; Adjusted diluted EPS: $2.4 to $2.7.
“The fourth quarter was challenging for our Healthcare segment, as market uncertainties have led many of our provider clients to be more cautious about taking on new projects,” said James H. Roth, chief executive officer and president of Huron. “We believe that the longer term prospects for our diversified healthcare offerings remain positive, and we continue to aggressively enhance our solutions to address the transformation in the healthcare industry.”
“Our Education and Life Sciences and Business Advisory segments performed well in 2016, and are well-positioned for growth in 2017,” Roth added.
The company will announce Q4 financial results on Feb. 23, 2017.
Huron Consulting (NASDAQ:HURN) is selling its Huron Legal service business to eDiscovery/document review service provider Consilio for $112M in cash, plus a contingent payment based on 2015 results and other adjustments. The deal is expected to close in Q4.
Thanks to the sale proceeds, Huron is upping the size of its buyback authorization (previously had $36.5M remaining) to $125M. That's good for repurchasing over 10% of shares at current levels. The company also plans to "reduce its corporate costs by approximately $11 million [per year] to more closely align to a level required to support the ongoing scale of its continuing operations."
With the legal unit treated as a discontinued operation, Huron now expects 2015 EPS of $2.96-$3.00 from $3.60-$3.70. 2016 guidance is expected to be given in Huron's Q4 report, currently scheduled for Feb. 22.