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Harte-Hanks (HHS)
NASDAQ:HHS
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Harte-Hanks
(NASDAQ:HHS)
45Neutral
Harte-Hanks (HHS) vs. S&P 500 (SPY)
Market Cap
$36.30M
Dividend YieldN/A
Average Volume (3M)14.16K
Price to Earnings (P/E)―
Beta (1Y)0.77
Revenue Growth-4.66%
EPS Growth-229.79%
CountryUS
Employees1,962
SectorIndustrials
Sector Strength68
IndustryIndustrial Conglomerates
Share Statistics
EPS (TTM)-4.11
Shares Outstanding7,288,983
10 Day Avg. Volume14,941
30 Day Avg. Volume14,162
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.20
Price to Cash Flow (P/CF)-3.10
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Harte-Hanks Business Overview & Revenue Model
Company DescriptionHarte-Hanks (HHS) is a leading global marketing services company that specializes in direct and targeted marketing solutions. The company operates in sectors such as retail, financial services, automotive, consumer brands, and healthcare, providing a comprehensive range of services including data-driven marketing insights, customer engagement solutions, and fulfillment services. Harte-Hanks leverages its expertise in data analytics, digital marketing, and customer care to help businesses enhance their marketing strategies and achieve impactful results.
How the Company Makes MoneyHarte-Hanks makes money primarily through its range of marketing services, which are designed to help businesses enhance customer engagement and improve their marketing strategies. The company's key revenue streams include direct marketing services, digital marketing, data analytics, and customer care solutions. Harte-Hanks collaborates with clients across various industries to deliver customized marketing campaigns, leveraging data-driven insights to optimize performance and maximize return on investment. Additionally, Harte-Hanks may engage in strategic partnerships and alliances to expand its service offerings and reach more clients, further contributing to its earnings.
Harte-Hanks Financial Statement Overview
Summary
Harte-Hanks shows significant financial difficulties with declining revenues, negative profit margins, and cash flow challenges. High leverage and weak equity position further exacerbate financial instability.Income Statement
The company has faced declining revenue with a negative revenue growth rate in the most recent periods. Gross profit margin for TTM stands at 24.67%, showing some ability to control costs, but the net profit margin is significantly negative at -15.90%, indicating unprofitability. The negative EBITDA margin of -14.63% for TTM further highlights operational inefficiencies.45
Neutral
Balance Sheet
The debt-to-equity ratio is high, indicating leveraged operations. Return on equity is negative, reflecting losses. However, the company's equity ratio of 19.47% suggests some stability in asset management despite ongoing challenges.50
Neutral
Cash Flow
The operating cash flow to net income ratio is negative, indicating cash flow issues. Free cash flow has deteriorated significantly, with a negative growth rate, and free cash flow to net income ratio is also negative, highlighting cash sufficiency concerns.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 187.60M | 191.49M | 206.28M | 194.60M | 176.90M | 217.58M | Gross Profit |
| 46.28M | 30.56M | 140.58M | 144.33M | 127.61M | 141.68M | EBIT |
| 7.91M | 3.36M | 15.11M | 13.52M | -1.20M | -3.48M | EBITDA |
| -27.44M | 9.89M | 22.48M | 15.20M | -13.53M | -4.47M | Net Income Common Stockholders |
| -29.84M | -1.57M | 36.78M | 14.97M | -1.69M | -26.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 20.88M | 18.36M | 10.36M | 11.91M | 29.41M | 28.10M | Total Assets |
| 125.17M | 122.76M | 119.98M | 107.86M | 119.50M | 110.20M | Total Debt |
| 14.20M | 28.51M | 22.32M | 30.77M | 55.06M | 39.39M | Net Debt |
| -6.68M | 10.14M | 11.96M | 18.86M | 25.65M | 11.29M | Total Liabilities |
| 134.64M | 102.90M | 101.18M | 122.85M | 162.90M | 150.16M | Stockholders Equity |
| -9.46M | 19.86M | 18.81M | -14.99M | -43.40M | -39.96M |
| Cash Flow | Free Cash Flow | ||||
| -10.31M | 7.67M | 22.99M | -4.81M | -10.54M | 9.20M | Operating Cash Flow |
| -6.40M | 10.48M | 28.79M | -1.76M | -7.84M | 12.10M | Investing Cash Flow |
| -3.95M | -2.31M | -11.49M | -2.90M | -775.00K | -2.60M | Financing Cash Flow |
| 4.16M | -3.22M | -15.82M | -13.41M | 7.31M | 3.09M |
Harte-Hanks Technical Analysis
Negative
4.98
Price Trends
5.21
Negative
5.74
Negative
6.72
Negative
Market Momentum
-0.07
Positive
41.99
Neutral
79.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HHS, the sentiment is Negative. The current price of 4.98 is below the 20-day moving average (MA) of 5.12, below the 50-day MA of 5.21, and below the 200-day MA of 6.72, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 79.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HHS.
Harte-Hanks Risk Analysis
Harte-Hanks disclosed 26 risk factors in its most recent earnings report. Harte-Hanks reported the most risks in the “Ability to Sell” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Harte-Hanks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.72B | 10.73 | 37.92% | 3.50% | 6.79% | 7.79% | |
73 Outperform | $25.24B | 13.67 | 16.11% | 2.67% | 8.35% | 26.60% | |
70 Outperform | $9.82B | 14.43 | 17.82% | 5.01% | -1.81% | -35.74% | |
63 Neutral | $8.60B | 12.61 | 16.04% | 6.21% | 4.34% | -59.80% | |
61 Neutral | $8.22B | 13.01 | 0.73% | 3.10% | 3.88% | -16.90% | |
48 Neutral | $471.58M | ― | -11.19% | ― | -5.79% | -10.12% | |
45 Neutral | $36.30M | ― | -143.62% | ― | -4.66% | -229.79% |
* Industrials Sector Average
Performance Comparison
HHS
Harte-Hanks
4.98
-2.67
-34.90%
IPG
Interpublic Group of Companies
26.43
-4.57
-14.74%
OMC
Omnicom Group
80.83
-8.64
-9.66%
WPP
WPP
39.89
-2.89
-6.76%
GCI
Gannett
3.09
1.08
53.73%
PUBGY
Publicis Groupe SA
24.84
-1.44
-5.48%
Harte-Hanks Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -3.86% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Harte Hanks. While there are positive developments in revenue growth, new client acquisitions, and cost-saving initiatives, these are offset by declines in certain segments, reduced operating income and EBITDA, and challenges with cash flow and pension costs. The company is focusing on long-term strategies and acknowledges short-term fluctuations.Highlights
Revenue Growth
Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.
New Client Acquisitions
The company secured new clients across various segments, including a dynamic design marketplace, a top financial services client, a global luxury automotive industry client, and a global resale marketplace for luxury goods.
Customer Care and Sales Services Growth
Revenues in the Customer Care segment increased to $13.1 million from $11.8 million in the prior year. Sales Services revenue grew from $2.2 million to $4.2 million, driven by increased volume from a large client.
Project Elevate Cost Savings
Project Elevate resulted in $6 million of in-year EBITDA improvement, with cost savings from personnel optimization, streamlining contracts, and improved warehouse operations.
Lowlights
Decline in Marketing Services and Fulfillment & Logistics
Marketing Services revenues fell to $9.1 million from $10.6 million, and Fulfillment & Logistics revenues decreased to $21.3 million from $22.5 million, due to customer budget reductions and lower logistics volume.
Operating Income and EBITDA Decline
Operating income in Q3 2024 was $1.9 million compared to $2.9 million in Q3 2023. Adjusted EBITDA was $4.1 million, slightly down from $4.2 million in Q3 2023.
Cash Position and Pension Plan Costs
Cash and cash equivalents decreased to $5.9 million from $13.3 million a year ago, impacted by a $6.1 million contribution to terminate Pension Plan 1 and additional costs for final onboarding pension expenses.
Expected Revenue Decline in Q4
The company anticipates a low to mid-single digit revenue decline in Q4 2024 as part of natural fluctuations during the path to sustainable growth.
Company Guidance
During the Harte Hanks Third Quarter 2024 Earnings Call, management provided detailed guidance on the company's performance and strategic direction. Kirk Davis, CEO, reported a modest 1.1% year-over-year revenue increase, contrasting the negative 16.6% decline from Q3 2023 when adjusted for acquired revenue. He acknowledged the expectation of a low to mid-single digit revenue decline in Q4, citing natural fluctuations in their growth trajectory. The focus remains on optimizing free cash flow, with significant investments in the newly established Customer Excellence and Growth division. David Garrison, CFO, highlighted the $47.6 million in revenues for Q3 2024, driven by growth in Customer Care and Sales Services, despite declines in other segments. The company aims for a $6 million EBITDA improvement, facilitated by Project Elevate's cost-saving measures, including personnel optimization and streamlined operations. Financially, the company ended the quarter with $5.9 million in cash and no debt, after a strategic $6.1 million contribution to terminate Pension Plan 1.Harte-Hanks Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Harte Hanks Leadership Transition and Strategic Focus Shift
Neutral
Jan 28, 2025
Harte Hanks announced a leadership transition with CEO Kirk Davis stepping down for personal reasons as of February 14, 2025, and David Fisher appointed as the Interim Chief Operating Officer. This shift aligns with Harte Hanks’ strategic focus on advancing data-driven customer experiences, particularly leveraging AI for enhanced customer engagement. The company is actively seeking a new CEO to further drive innovation and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.