Friday, November 12, 2021

Harte Hanks (HRTH)
A Well-Oiled, More Efficient, Cash Flow Machine

Harte-Hanks is a marketing services company that provides multichannel marketing solutions as well as consulting, data analytics, and strategic assessment. The company’s offerings focus on business-to-business, retail, finance, and automotive segments through digital, social, mobile, and print media offerings. Harte-Hanks strives to develop better customer relationships through its marketing and analytical services for clients. The majority of its revenue is derived from its marketing services in the retail, technology, and consumer brand segments.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

A surprisingly strong Q3. Total company revenue increased a surprising 4.0% to $49.6 million, well above our $45.3 million estimate, fueled by a 10.2% increase in its Customer Care segment revenues. Customer Care revenues beat our estimate by a whopping 29.2%, as the Covid related customer did not go away as anticipate and the company gained additional clients. The company reported its 6th consecutive quarter of positive EBITDA, with adj. EBITDA beating expectations, $6.1 million versus our $3.3 million estimate.


Favorable momentum.  Customer Care is expected to be stronger than originally expected as the Covid related business is not expected to fall off until next year. As a result, we are raising our Q4 total company revenue expectation from $42.5 million to $48.7 million. We are raising our Q4 adj. EBITDA estimate from $3.1 million to $4.4 million, bringing our full year 2021 adj. EBITDA estimate to …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.