Heidrick & Struggles International Stock Up 25 Percent On Third-Quarter News

Shares of executive search firm Heidrick & Struggles International rose 25 percent on October 31, ending at 61 13/16, in response to the company's third-quarter financial results for the period ended September 30. Net income rose to $10.8 million, a 46 percent increase from $7.4 million in last year's third quarter. Though third quarter revenues of $148 million were lower than the $166.4 million reported in the second quarter, Wall Street did not mind. "The company had made it known for a long time that revenues would not be up sequentially, due to capacity issues and seasonal factors," says Goldman Sachs analyst Meg Saegebarth. "The stock reacted positively yesterday because investors did not expect Heidrick to have revenues of more than $140 million; they stated revenue growth of 20 percent and came in at 29 percent."