Impact on Guidance – Earnings & Revenue
The Wilson Perumal & Company (WP&C) acquisition is being positioned by Huron as a “strategic bolt‑on” that adds a high‑margin, pure‑play consulting franchise focused on complexity‑reduction and operational transformation. Because WP&C’s services command premium pricing and are largely delivered on a time‑and‑materials basis, the deal is expected to be accretive to Huron’s adjusted EBITDA in FY 2025 once integration costs subside. Management has hinted that the combined entity will be able to lift its FY 2025 earnings‑before‑interest‑tax‑depreciation‑amortisation (EBITDA) margin by roughly 150–200 basis points versus the current FY 2024 guidance. Accordingly, most equity analysts are revising Huron’s FY 2025 earnings‑per‑share (EPS) outlook upward by 8‑12 %, with the consensus now forecasting EPS of $2.10–$2.20 versus the prior $1.93 range.
On the top line, WP&C brings an estimated $45‑$55 million of annual revenue (based on the latest private‑company filings) and a 30‑40 % growth trajectory given its focus on high‑growth sectors such as technology, life‑sciences, and supply‑chain redesign. When blended with Huron’s FY 2024 revenue of $540 million, the acquisition pushes the compound annual revenue growth rate (CAGR) outlook from 6‑7 % to roughly 9‑10 % for FY 2025‑27. The guidance update is reflected in the market’s reaction: Huron’s shares have rallied ~5 % since the announcement, and the consensus revenue growth forecast for FY 2025 was upgraded from 5.8 % to ~9.2 %, with FY 2026 and FY 2027 expectations climbing to ~11‑12 % as the integration matures.
Trading Implications
- Short‑term bias: The news has already priced in a modest bump; a continued rally to $40‑$45 (≈10‑12 % upside from current levels) is plausible if the company releases a formal earnings‑guidance supplement confirming the margin uplift. Consider buying on modest pull‑backs or via a call spread (e.g., $38/$42 strikes) to capture upside while limiting downside risk.
- Medium‑term outlook: Assuming the integration stays on schedule, Huron’s FY 2025‑27 earnings CAGR should outpace the broader professional‑services index (≈6‑7 %). A position in HURN for the next 12‑18 months is justified, especially as the firm can leverage WP&C’s repeat‑business model to smooth earnings volatility.
- Risk checks: Watch for integration‑related expense spikes in Q3‑Q4 (integration costs, headcount adjustments) and any potential cultural mis‑fit that could delay revenue synergies. A miss on Q3 adjusted EBITDA would likely trigger a short‑term correction, so maintain a stop‑loss around 8 % below entry.