SAN FRANCISCO (Thomson Financial) - Shares of Hudson Highland Group rallied
Tuesday after the New York-based provider of staffing and executive search
services posted better-than-expected first-quarter results.
Late Monday, Hudson Highland reported first-quarter income from continuing
operations of $268,000, or a penny a share, versus the 5-cent loss estimate of
analysts polled by Thomson Reuters.
Revenue for the three months ended March 31 rose 3.2% to $297.5 million,
above the $290 million consensus estimate.
The company expects second quarter revenue of $300 million to $315 million
and adjusted EBITDA of $10 million to $13 million. Analysts are currently
looking for revenue of $290 million.
Robert W. Baird & Co. has an outperform rating on the company's stock and a
$10 price target.
"We believe Hudson Highland remains a high risk/high reward situation," the
broker wrote in a note to clients. "Valuation [is] attractive, in our view,
based on long-term potential and recent progress, but economic headwinds are
increasing."
William Blair & Co., which also has an outperform rating on Hudson Highland,
similarly cited the company's low valuation and favorable risk/reward profile.
Shares of Hudson Highland surged 19% to $10.68 on volume of nearly 200,000
shares, versus a 30-day average volume of 127,000 shares.
Gabriel Madway
gm/vj
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