Huron Consulting Group’s stock is experiencing a powerful rally in today’s trading session, propelled by quarterly results that substantially exceeded market projections. The company’s shares have advanced by 9.6%, reaching a price of $167.18, reflecting strong investor endorsement of the reported figures. This follows a previous closing price of $152.48, highlighting the intensity of the market’s positive response.
Financial Metrics Shatter Forecasts
The professional services firm delivered an impressive quarterly report, headlined by earnings that came in well above consensus estimates. Huron reported earnings per share of $2.10, decisively beating the $1.86 forecast by analysts. The revenue performance was even more striking, climbing 16.7% year-over-year to reach $432.36 million. This figure also comfortably surpassed the anticipated $418.13 million, signaling robust business momentum.
Broad-Based Segment Growth Drives Results
The company’s strength was not isolated to a single unit but was widespread across its diverse business segments, each contributing to the record performance:
- Healthcare: Achieved record-breaking revenue figures, expanding by an impressive 20%.
- Education: Also reached a new record, posting a solid 7% growth rate.
- Commercial: This segment boomed with a 27% surge, fueled by strategic acquisitions and a growing digital business.
Despite the explosive revenue growth in the Commercial division, a note of caution emerged as its operating margin contracted from 24.5% to 16.4%. Management attributed this primarily to increased personnel-related expenses.
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Analyst Community Shows Divided Stance
The stellar quarterly report has elicited a mixed reaction from financial analysts. On one hand, Barrington Research has reinforced its positive outlook by raising its price target to $176 and maintaining an “Outperform” rating. Conversely, Wall Street Zen has adopted a more cautious stance, downgrading its rating to “Hold.”
The stock’s recent trajectory, however, tells a compelling story. Over the past month, Huron’s shares have accumulated gains of 14.9%, even touching a new 52-week high of $174.26. Since the start of the year, the stock has delivered a substantial return of 36.5%.
Strong Financial Health and Upbeat Guidance
Solid fundamental metrics underpin the company’s positive trajectory. Huron demonstrated financial robustness with $93.8 million in operating cash flow and $85.3 million in free cash flow. The balance sheet remains sturdy, supported by a manageable debt level of $611 million and a leverage ratio of 2.3.
Looking ahead, company leadership has expressed confidence in its ability to maintain this momentum. For the full fiscal year 2025, management has provided an optimistic earnings forecast, projecting EPS in the range of $7.60 to $7.70. This guidance serves as a strong affirmation of the enduring strength within their consulting operations.
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