Armin's Stock Selection

Update
Huron Consulting Group Inc (HURN) reported a 44 percent rise in quarterly profit, but forecast first-quarter revenue below market expectations, citing weak performance of its legal financial consulting business.
The Chicago-based financial services consulting company, however, sees profits growing between 20 to 25 percent in 2008, as it seeks to gain from a worsening credit and housing market.
The Chicago-based financial services consulting company, however, sees profits growing between 20 to 25 percent in 2008, as it seeks to gain from a worsening credit and housing market.
Huron's fourth-quarter results were helped by strong performance at its health and education consulting, and corporate consulting segments.Revenue from health and education consulting, which is the biggest contributor to the total revenue, more than doubled to about $50 million.
The company posted earnings of $11.5 million, or 63 cents a share, for the quarter, compared with $8 million, or 46 cents a share, a year earlier. Revenue rose 63 percent to $136 million. Analysts on average were expecting revenue of $136.4 million, according to Reuters Estimates.
STRONG 2008 OUTLOOK
In 2008, Huron will be working to expand more into the academic medical center space and provide a full range of services to increase efficiency to all hospitals whether troubled or healthy, Chief Executive Gary Holdren said in a conference call.
"There are no macro economic pressure that can slow our growth in the health and education segment in the next several years," Holdren said
Huron forecast first-quarter earnings of 66 cents to 70 cents a share on revenue of $142 million to $147 million.
Analysts on average were expecting earnings of 70 cents a share on revenue of $154.9 million.
For 2008, Huron sees earnings of $3.10 to $3.28 a share, on revenue of $640 million to $670 million. Analysts expect earnings of $3.11 on revenue of $644.2 million.
Huron said it expects its recently started Tokyo office to have a positive impact on the company's 2008 results.
GAINS FROM CREDIT CRISIS
The benefit from the subprime crisis is a bit delayed for Huron, but they will gain from the turmoil in days to come, Wong Kevane of JMP Securities said by phone, adding it is more a question of when than if. It is not that the business arising out of the credit market crisis is going to someone else and Huron is losing out on it, it is just that the investigations and litigations have not yet started, Holdren said.
Once it does, it will be a business driver for Huron, Holdren added.

Shares of Huron, have lost a third of their value year-to-date, and losing some 22% in my portfolio since inception( days held 210), too. I'll be holding this stock expecting gains from credit crisis and strong 2008 outlook. It seems Huron business is poised to wrestle present market environment!
Would like to hear any bearish opinions, on this stock.

Comments: View Comments |  Monday February 25, 2008