The Hackett Group, Inc. (NASDAQ:HCKT) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 05:00 pm ET
Welcome to The Hackett Group Third Quarter Earnings Conference Call. [Operator Instructions].
Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO and Mr. Rob Ramirez, Chief Financial Officer. Mr. Ramirez, you may begin.
Robert A. Ramirez
Good afternoon, everyone, and thank you for joining us to discuss The Hackett Group's third quarter results. Speaking on the call today and here to answer your questions are Ted Fernandez, Chairman and CEO of The Hackett Group and myself, Rob Ramirez, Chief Financial Officer.
A press announcement was released over the wires at 04:05 PM Eastern Time. For a copy of the release, please visit our website at www.thehackettgroup.com. We will also place any additional financial or statistical data discussed on this call that is not contained in the release on the Investor Relations page of our website.
Before we begin, I would like to remind you that in the following comments and in the question-and-answer session, we will be making statements about expected future results, which may be forward-looking statements for the purposes of the Federal Securities Laws. These statements relate to our current expectations, estimates and projections and are not a guarantee of future performance. They involve risks, uncertainties and assumptions that are difficult to predict and which may not be accurate. Actual results may vary. These forward-looking statements should be considered only in conjunction with the detailed information, particularly the risk factors that are contained in our SEC filings.
At this point, I would like to turn it over to Ted.
Ted A. Fernandez
Thank you, Rob, and welcome everyone to our third quarter earnings call. As we normally do, I will open the call with some overview comments on the quarter. I will then turn it back over to Rob to comment on detailed operating results, cash flow as well as comment on guidance. We will then review our market and strategy related comments. And we'll follow that up by opening it up for Q&A.
This afternoon, we reported net revenues of $66.8 million and pro forma earnings per share of $0.27, both of which were within our guidance. Solid U.S. performance was offset by lower than expected international revenues, which unfavorably impacted our results by $0.03 when compared to guidance. As you will see from our Q4 guidance, we are taking the necessary actions to mitigate the impact of the volatility in Europe on our 2020 results.
Consistent with broad economic indicators, our strategy and business transformation and ERP and EPM and analytics U.S. groups experienced solid activity, which is reflected in our year-over-year revenue growth. Total Q3 U.S. revenues were up 4.2% in spite of the unfavorable but diminishing impact from Oracle on-premises revenue decline. More importantly, we expect the year-on-year U.S. fourth quarter growth to be above 6%.
On the strategy and business transformation, U.S. front, we saw the momentum we've built into Q2 carried into the third quarter and it resulted in solid growth as we mentioned. We expect the revenue growth to further accelerate into the fourth quarter. In our