Net revenue declined at Heidrick & Struggles International Inc. (NASD: HSII) in the third quarter to $182.2, down 2.9% and 1.6% on constant currency basis compared to the 2018 third quarter.

Growth in the company’s consulting business was offset by weakness in the executive search business.

On 23 September 2019, the company acquired 2GET, a search firm in Brazil.  The company said the transaction provides it with a strong platform for Latin America growth. 

As a result, the company recorded a restructuring charge of $4.1 million in the quarter in connection with related employee, facility and legal costs associated with the transition away from its legacy Brazil operations.  The acquisition of 2GET, coupled with the transition away from the company's legacy operations, is expected to be accretive to earnings per share.   

Net Revenue by segment and geography is as follows.

The group added that growth in the Consumer Markets and Global Technology & Services practices was offset by declines in the other three industry practices.

"We are pleased to be keeping pace with last year's record revenue, despite some geographic variability," Heidrick & Struggles' President and Chief Executive Officer, Krishnan Rajagopalan said. "Moreover, strong focus on our business operations has generated increases in year-to-date operating income, operating margin, net income and earnings per share, all on an adjusted basis. Cross collaboration between Executive Search and Heidrick Consulting continues to bear fruit as evidenced by Heidrick Consulting's third quarter revenue growth both sequentially and year-over-year.  We are also very excited about our acquisition in Brazil, which gives us a strong platform to grow throughout Latin America, where we see great opportunities for both Executive Search and Heidrick Consulting." 

Heidrick & Struggles also reported revenue for the nine-month period of $526.9 million, a decrease of 0.7% from $530.7 million in the first nine months of 2018. In constant currency, consolidated net revenue increased 1.2%.

Rajagopalan concluded, "Looking ahead, we are advancing important long-term initiatives that we expect will broaden our capabilities and drive growth in the years to come, while enhancing our data analytics as we focus on delivering a fully integrated premium offering to our clients.  Importantly, our market position and cash flow remain strong.  We believe this strategically positions our company to capitalize on a variety of opportunities, which we expect will create future value for our shareholders."

In trading yesterday Heidrick & Struggles International shares closed at $27.81, up 0.36% on the day and 10.93% above the 52 week low of $25.07 set on 3 October 2019. Based on its current share price the company has a market value of $532.06 million.