HQI Earnings Prediction
The chart below shows how HQI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HQI sees a -0.81% change in stock price 10 days leading up to the earnings, and a -2.93% change 10 days following the report. On the earnings day itself, the stock moves by +2.58%. This data can give you a slight idea of what to expect for the next quarter's release.
HQI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
9.42M
1.56%
8.48%
Gross Margin
--
--
--
Operating Margin
35.47%
48.29%
14.24%
Net Margin
-22.99%
-233.35%
-196.15%
EPS
-0.16
-245.45%
-206.67%
No Data Available
HQI Earnings Analysis
HireQuest, Inc. Common Stock (DE) Corporation (HQI.O) Earnings Conference Call
Positive
Sequential Revenue Increase: 1. Sequential Revenue Growth: HireQuest achieved a sequential revenue growth of 8.5% in Q3 2024 compared to Q2 2024, indicating a positive trend in the temporary staffing market.
Adjusted Net Income Growth: 2. Adjusted Net Income Increase: Adjusted net income for Q3 2024 rose by 29% year-over-year, reaching $2.8 million, showcasing the company's ability to grow despite industry challenges.
Workers' Compensation Expense Decrease: 3. Significant Reduction in Workers' Compensation Expense: Workers' compensation expenses decreased nearly 67% in Q3 2024 compared to Q3 2023, contributing to improved profitability.
Adjusted EBITDA Surge: 4. Strong Adjusted EBITDA Performance: Adjusted EBITDA for Q3 2024 was $4.9 million, a 32.4% increase from $3.7 million in the prior year, with an adjusted EBITDA margin of 52% compared to 40% in Q3 2023.
Dividend Consistency: 5. Consistent Dividend Payments: HireQuest has maintained regular quarterly dividends since Q3 2020, with a recent payment of $0.06 per common share, reflecting a commitment to returning value to shareholders.
Negative
Impairment Charge Impact: 1. Significant Impairment Charge: The company recorded a one-time non-cash impairment charge of over $6 million related to MRI Network assets, which severely impacted profitability for the quarter.
Net Loss Comparison: 2. Net Loss Reported: HireQuest reported a net loss of $2.2 million in Q3 2024, translating to a loss of $0.16 per diluted share, compared to a net income of $1.5 million or $0.11 per diluted share in Q3 2023.
Sales Decline Analysis: 3. Decline in System-Wide Sales: System-wide sales decreased to $148.6 million in Q3 2024 from $151.2 million in the same period last year, primarily due to a $6.5 million decline in professional recruiting and staffing brands.
Stagnant Revenue Performance: 4. Flat Revenue Growth: Total revenue for Q3 2024 was $9.4 million, a mere 1.6% increase from $9.3 million in Q3 2023, indicating stagnation in revenue growth despite slight improvements in certain areas.
High Operational Costs: 5. High SG&A Expenses: Although SG&A expenses decreased by 15.3% year-over-year, they still amounted to $5.4 million, reflecting ongoing high operational costs despite efforts to manage expenses.
HQI FAQs
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HQI Earning Call Sentiment
HireQuest, Inc. (HQI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HQI.O
2.69%Positive
The earnings call summary shows strong financial performance with increased adjusted EBITDA and reduced expenses, despite a net loss due to a one-time charge. The Q&A highlights optimism in the business environment and acquisition opportunities, with management indicating potential growth areas. The commitment to dividends and improved working capital also support a positive outlook. However, the lack of a share repurchase program and competitive pressures are minor concerns. Overall, the financial health and strategic direction suggest a positive stock price movement in the short term.