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/HCKT
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Hackett Group Inc

Hackett Group Inc

HCKT
$10.34USD↓-0.39%-0.04 today

MARKET CAP

260.5M

P/E (TTM)

6.9x

FWD P/E

6.3x

DAY RANGE

$10 – $11

52W RANGE

$9
$24

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.

  • ↑GenAI integration: anticipating higher IT budgets, boosting long-term revenue.
  • ↑$4.6M share repurchase and $0.12 quarterly dividend underscore cash flow strength.
  • ↓Q1 revenue declined 11% YoY to $68.7M; EPS slid to $0.34.
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The case for & against

Bull & Bear analysis

Bearish

The Hackett Group, Inc. (NASDAQ: HCKT) is a leading enterprise consulting and advisory firm specializing in optimizing business operations through its innovative AI platforms and process intelligence. Positioned at the forefront of the generative AI (GenAI) technology landscape, Hackett is transitioning from traditional consulting models towards AI-enabled services. With a commitment to improving operational efficiency and enhancing client value, the company aims to leverage its proprietary solutions to navigate the complexities of digital transformation in an evolving market environment.

Bull says

  • ↑GenAI integration: anticipating higher IT budgets, boosting long-term revenue.
  • ↑$4.6M share repurchase and $0.12 quarterly dividend underscore cash flow strength.
  • ↑Partnerships with ServiceNow and IBM broaden AI transformation reach and synergies.
  • ↑Recurring advisory/subscription revenue at ~24% of total drives stable cash flows.
  • ↑Strong earnings yield and attractive dividend yield suggest potential undervaluation.
  • ↑Moderate leverage and low volatility imply balanced debt levels and steadier shares.

Bear says

  • ↓Q1 revenue declined 11% YoY to $68.7M; EPS slid to $0.34.
  • ↓Adjusted gross margin eased to 42.3% from 43.4%; net cash outflow $5.1M.
  • ↓Negative growth and analyst revision factors point to persistent headwinds.
  • ↓Weak profitability metrics and small company size hinder competitive stance.
  • ↓High short interest reflects investor skepticism on recovery prospects.
  • ↓Macroeconomic uncertainty elongates client decision cycles, delaying AI ROI realization.

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 05-29-2026neutral

Transcript signals

Bull points

  • This afternoon, we reported revenues before reimbursements of $76.2 million and adjusted earnings per share of 41 cents, near and at the high end of our quarterly guidance, respectively.
  • Our results were driven by the performance of our GSBT segment, which was driven by the strong revenue growth from our Gen AI engagements.
  • Gen AI engagements also favorably impacted our gross margin. They demand a higher margin than our traditional consulting and implementation revenues and are driven by the highly differentiated capabilities of our AI Explorer and ZBrain platforms, as well as our implementation teams.

Bear points

  • No, I think Rob said that Oracle and SAP would be down. I would expect Oracle's activity is probably down.
  • Although demand for digital transformation remains strong in traditional areas, it continues to be impacted by thoughtful decision-making as organizations affect competing priorities due to the economic concerns and the consideration of emerging Gen AI technologies.
  • What is new is the increased uncertainty that tariff negotiations will have on client short-term decision-making.
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