Friday, August 14, 2020
Harte-Hanks Inc. (HRTH)
Recovering Better Than Expected
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.
Overachieves Q2 results. Revenues of $41.6 million was better than our $38.5 million estimate and reflected a 23.9% year-over-year quarterly revenue decline, better than many traditional media companies in Q2. Cash flow, as measured by Adj. EBITDA, was a better than expected $480,000 versus our estimate of $150,000. We believe that the results reflect that the company’s transition toward revenue growth is on track.
Stabilizing revenues? We believe that Q2 revenues may reflect a stabilization in the company’s revenues, possibly the first time since 2016. Q2 revenues showed a sequential quarterly improvement from $40.5 million in Q1 and we estimate that Q3 revenues will …
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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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