tiprankstipranks
Trending News
More News >
Harte-Hanks (HHS)
NASDAQ:HHS

Harte-Hanks (HHS) AI Stock Analysis

Compare
145 Followers

Top Page

HH

Harte-Hanks

(NASDAQ:HHS)

Rating:45Neutral
Price Target:
$4.00
▲(1.27%Upside)
Harte-Hanks exhibits significant financial and technical challenges, with persistent losses and weak market momentum weighing heavily on its stock score. The positive corporate events, such as the credit line extension and leadership changes, offer some optimism for future strategic improvements.

Harte-Hanks (HHS) vs. SPDR S&P 500 ETF (SPY)

Harte-Hanks Business Overview & Revenue Model

Company DescriptionHarte Hanks, Inc. operates as a customer experience company in the United States and internationally. It operates through three segments: Marketing Services, Customer Care, and Fulfillment & Logistics Services. The company provides strategic guidance to help clients to plan and execute omni-channel marketing programs; audience identification, profiling, segmentation and prioritization, predictive modeling, and data strategy services; data hygiene and cleansing services; print, broadcast, direct mail, website, app, display, social, mobile, search engine marketing, and voice services; Website and app development, e-commerce enablement, database building and management, platform architecture creation, and marketing automation services; and outsourcing marketing operations solutions. It also offers customer experience management services comprising interact and resolve consumer concerns across hardware and software platforms, healthcare benefit plans, and recalls or a myriad of other customer service issues; CRM and digital transformation solutions to create meaningful customer interactions by connecting content between agent or AI-driven interfaces and web-based self-help tools and community forums; and intelligence-based B2B solutions that understand audiences and their behaviors, and then inspire and drive action to deliver results. In addition, the company provides product, print-on-demand, and mail fulfillment solutions, such as printing on demand, managing product recalls, and distributing literature and promotional products; custom solutions to engage audiences, target customers, support conferences, and appreciate employees; and third-party logistics and freight optimization services. It primarily serves B2B, consumer brand, financial services, retail, and healthcare vertical markets. Harte Hanks, Inc. was founded in 1923 and is headquartered in Chelmsford, Massachusetts.
How the Company Makes MoneyHarte-Hanks makes money primarily through its marketing services, which include data analytics, customer engagement solutions, and digital and direct mail marketing. The company's revenue model is centered on providing customized marketing strategies and execution for its clients, which often involves long-term contracts and partnerships. Key revenue streams include fees for strategic consulting, data management, creative development, and the execution of multi-channel marketing campaigns. Harte-Hanks also benefits from partnerships with major technology and data providers, which enable it to enhance its service offerings and maintain a competitive edge in the rapidly evolving marketing landscape.

Harte-Hanks Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: -14.13%|
Next Earnings Date:Aug 07, 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.
Q3-2024 Updates
Positive Updates
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.
Negative Updates
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 Financial Statement Overview

Summary
Harte-Hanks faces significant financial challenges, with declining revenues and persistent net losses. The balance sheet shows moderate leverage, but the negative cash flow indicates liquidity issues. Overall, the financial health is under pressure, requiring strategic improvements.
Income Statement
45
Neutral
The company's income statement shows challenges with declining revenues and profitability. The TTM revenue decreased from $185.24M to $181.36M, marking a revenue decline. The gross profit margin for TTM stands at 47%, indicating some ability to cover costs, but the net profit margin is negative at -16.83%, reflecting consistent net losses. The negative EBIT and EBITDA margins further emphasize operational inefficiencies. Overall, the income statement reflects financial struggles with declining revenue and persistent losses.
Balance Sheet
55
Neutral
The balance sheet shows a moderately leveraged position with a debt-to-equity ratio of 1.11, which is reasonable but indicates reliance on debt financing. The equity ratio is 21.31%, suggesting a moderate portion of the company's assets is financed by equity. However, the return on equity is negative, indicating shareholder investments are not yielding profits. The financial position is somewhat stable but reflects risks associated with profitability issues.
Cash Flow
40
Negative
The cash flow statement reveals challenges with generating positive cash flow. The operating cash flow to net income ratio indicates cash outflow from operations, and free cash flow is negative, highlighting the company's struggle to generate cash after capital expenditures. The free cash flow growth rate is also negative, reflecting worsening cash generation. Overall, the cash flow position is weak, raising concerns about liquidity and sustainability.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue181.35M185.24M191.49M206.28M194.60M176.90M
Gross Profit85.20M91.47M30.56M140.58M144.33M127.61M
EBITDA-28.32M12.05M9.89M22.48M15.20M-13.53M
Net Income-30.52M-30.30M-1.57M36.78M14.97M-1.69M
Balance Sheet
Total Assets131.07M101.78M122.76M119.98M107.86M119.50M
Cash, Cash Equivalents and Short-Term Investments18.36M9.93M18.36M10.36M11.91M29.41M
Total Debt28.51M24.60M28.51M22.32M30.77M55.06M
Total Liabilities111.22M80.09M102.90M101.18M122.85M162.90M
Stockholders Equity19.86M21.69M19.86M18.81M-14.99M-43.40M
Cash Flow
Free Cash Flow-4.39M-6.73M7.67M22.99M-4.81M-10.54M
Operating Cash Flow-1.80M-2.99M10.48M28.79M-1.76M-7.84M
Investing Cash Flow-3.32M-3.74M-2.31M-11.49M-2.90M-775.00K
Financing Cash Flow4.15M-419.00K-3.22M-15.82M-13.41M7.31M

Harte-Hanks Technical Analysis

Technical Analysis Sentiment
Negative
Last Price3.95
Price Trends
50DMA
4.42
Negative
100DMA
4.66
Negative
200DMA
5.48
Negative
Market Momentum
MACD
-0.17
Negative
RSI
44.00
Neutral
STOCH
32.71
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 3.95 is below the 20-day moving average (MA) of 4.06, below the 50-day MA of 4.42, and below the 200-day MA of 5.48, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 32.71 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 27 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DLDLX
71
Outperform
$729.71M13.089.10%7.13%-2.69%61.73%
61
Neutral
$93.07M-16.55%-2.67%21.65%
58
Neutral
$1.34B4.20-2.93%7.41%3.67%-51.13%
55
Neutral
$26.98M-12.15%17.04%-2188.42%
HHHHS
45
Neutral
$28.72M-147.49%-4.46%-3053.30%
41
Neutral
$42.37M-123.16%-15.07%33.40%
$4.04M
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HHS
Harte-Hanks
3.95
-4.77
-54.70%
DLX
Deluxe
16.83
-3.43
-16.93%
MCHX
Marchex
2.12
0.63
42.28%
FLNT
Fluent
1.88
-1.73
-47.92%
BAOS
Baosheng Media Group Holdings
2.63
0.72
37.70%
SWAG
Stran & Company
1.45
0.32
28.32%

Harte-Hanks Corporate Events

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Harte-Hanks Extends Credit Line with Texas Capital
Positive
Jun 30, 2025

On June 24, 2025, Harte Hanks, Inc. extended its $25 million secured revolving line of credit with Texas Capital Bank, now maturing in June 2028. This extension, which includes an option to increase commitments by $10 million, enhances the company’s financial flexibility and supports its growth initiatives. Additionally, David Fisher was appointed as President, effective June 2, 2025, to oversee the company’s business segments and lead its transformation initiative, Project Elevate.

The most recent analyst rating on (HHS) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Harte-Hanks stock, see the HHS Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Harte-Hanks Stockholders Approve Key Governance Decisions
Neutral
May 23, 2025

At the Harte Hanks 2025 Annual Meeting of Stockholders held on May 22, 2025, stockholders voted on key governance and operational matters. Four board nominees were elected to serve until the 2026 annual meeting, and the compensation of named executive officers was approved on a non-binding advisory basis. Additionally, the selection of Wolf & Company P.C. as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (HHS) stock is a Buy with a $17.50 price target. To see the full list of analyst forecasts on Harte-Hanks stock, see the HHS Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 01, 2025