Harte-Hanks (HHK1) AI Stock Analysis

Harte-Hanks

(Frankfurt:HHK1)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Merger provides strategic resolutionThe agreed acquisition offers Harte Hanks a defined strategic path and may resolve the challenges of operating as a small standalone public company. A transaction with cash or preferred-stock consideration could provide shareholders with liquidity or ongoing income-oriented exposure, subject to closing conditions.

Negative Factors

Severe revenue contractionThe sharp trailing-twelve-month revenue decline signals meaningful deterioration in demand, client activity, or contract volume. Sustained contraction reduces operating scale, makes fixed costs harder to absorb, and weakens the company’s ability to reinvest in capabilities needed to restore durable growth.

Harte-Hanks (HHK1) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 28.85M
Dividend Yield: ―
Average Volume (3M): 224
Price to Earnings (P/E): -5.1
Beta (1Y): 0.42
Revenue Growth: -17.71%
EPS Growth: -72.30%
Country: Germany
Employees: 1,719
Sector: Industrials
Sector Strength: 63
Industry: Specialty Business Services

Harte-Hanks Business Overview & Revenue Model

Company Description

Harte Hanks, Inc. is an established global firm specializing in customer experience solutions, operating both domestically and internationally. Its business is structured around three primary divisions: Marketing Services, Customer Care, and Fulfillm...

Harte-Hanks Earnings Call Summary

Earnings Call Date:Nov 13, 2024(Q3-2024)|% Change Since:-49.44%|Next Earnings Date:Nov 04, 2026

Earnings Call SentimentNeutral

The earnings call reflects a mixed outlook for Harte Hanks. While there are positive developments in revenue growth, new client acquisitions, and cost-saving initiatives, these are offset by declines in certain segments, reduced operating income and EBITDA, and challenges with cash flow and pension costs. The company is focusing on long-term strategies and acknowledges short-term fluctuations.

Positive Updates

Revenue Growth

Harte Hanks reported a 1.1% year-over-year revenue increase in Q3 2024, marking an improvement from the negative 16.6% revenue decline in Q3 2023.

Negative Updates

Decline in Marketing Services and Fulfillment & Logistics

Marketing Services revenues fell to $9.1 million from $10.6 million, and Fulfillment & Logistics revenues decreased to $21.3 million from $22.5 million, due to customer budget reductions and lower logistics volume.

Company Guidance

During the Harte Hanks Third Quarter 2024 Earnings Call, management provided detailed guidance on the company's performance and strategic direction. Kirk Davis, CEO, reported a modest 1.1% year-over-year revenue increase, contrasting the negative 16.6% decline from Q3 2023 when adjusted for acquired revenue. He acknowledged the expectation of a low to mid-single digit revenue decline in Q4, citing natural fluctuations in their growth trajectory. The focus remains on optimizing free cash flow, with significant investments in the newly established Customer Excellence and Growth division. David Garrison, CFO, highlighted the $47.6 million in revenues for Q3 2024, driven by growth in Customer Care and Sales Services, despite declines in other segments. The company aims for a $6 million EBITDA improvement, facilitated by Project Elevate's cost-saving measures, including personnel optimization and streamlined operations. Financially, the company ended the quarter with $5.9 million in cash and no debt, after a strategic $6.1 million contribution to terminate Pension Plan 1.

Harte-Hanks Risk Analysis

Harte-Hanks disclosed 30 risk factors in its most recent earnings report. Harte-Hanks reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

3 New Risks

1.We will be subject to business uncertainties while the merger is pending, which could adversely affect our business.Q2, 2026

2.Even if the merger is completed, the integration of Harte Hanks by Star Equity may not be as successful as anticipated.Q2, 2026

3.We expect to incur significant transaction fees and costs in connection with the merger.Q2, 2026

Harte-Hanks Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

DE:HHK1 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLX	66Neutral	$1.04B	9.99	14.63%	5.31%	0.30%	71.14%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MCHX	47Neutral	$63.85M	-11.43	-18.24%	―	-7.47%	-16.48%
FLNT	46Neutral	$108.73M	-4.47	-151.70%	―	-12.05%	43.57%
SWAG	46Neutral	$24.23M	590.91	0.18%	―	10.26%	―

* Industrials Sector Average

Performance Comparison

DE:HHK1 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:HHK1	Harte-Hanks, Inc.	3.16	0.50	18.80%
DLX	Deluxe Corp.	22.59	5.40	31.40%
MCHX	Marchex	1.44	-0.33	-18.87%
FLNT	Fluent Inc	3.44	1.35	64.59%
BAOS	Baosheng Media Group Holdings Ltd	0.15	-2.86	-95.02%
SWAG	Stran & Company, Inc	1.30	-0.64	-32.99%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Harte-Hanks AI Stock Analysis