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Friday, May 15, 2020
Harte-Hanks Inc. (HHS)
Modest Covid Impact; Encouraging Revenue Opportunities
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.
Beats on revenue. Q1 revenues of $40.5 million was better than our $39.5 million estimate, in spite of the Covid impact, estimated to have adversely affected revenues by $2 million. Costs were a little higher than expected, and, as such, adj. EBITDA was shy of our loss of $1.7 million, coming in at a loss of $2.4 million.
Encouragingly, maintaining quarterly outlook. The Covid impact appears to be relatively modest, hitting its marketing services business, but not its contact center or market fulfillment businesses. Our revenue estimates have been adjusted for the exit of its direct mail operations to Summit Direct Mail, which will save $2 million to $3 million in annualized savings. Adj. EBITDA is expected to be positive in coming quarters for…
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
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