Friday, November 13, 2020
Harte-Hanks Inc. (HRTH)
A Nice Upside Surprise; Raise Full Year Estimates
Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. Harte-Hanks strives to develop better customer relationships through its marketing and analytical services for clients. The majority of its revenue is derived from its marketing services in the retail, technology, and consumer brand segments.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Q3 outperforms. Q3 revenues of $47.7 million was significantly better than our $43.8 million estimate driven by a one-time project in its customer care/call center. We estimate that the one-time project contributed roughly $5 million in the quarter, or the variance to our Q3 revenue estimate. Notably, Q3 represented a sequential quarterly revenue improvement from Q2. Due to earlier cost cuts, the company over achieved our cash flow estimate, with adjusted EBITDA of $3.2 million versus our $2.2 million estimate.
Driving efficiencies. While revenue trends appear to be improving, management continues to drive operating efficiencies, with facility consolidations and further cost cuts. We believe these measures should allow the company to show strong cash flow growth in 2021. At this time, we are maintaining our 2021 estimates, although we believe that the company could over achieve our cash flow estimate with …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.