Chicago-based executive recruiter Heidrick & Struggles International posted a lower-than-expected quarterly profit, weighed down by higher payroll expenses and employee benefits.
The company, which competes with Korn/Ferry International, said it expects first-quarter revenue of $122-$128 million and $515-$545 million for the full year.
Analysts were expecting 2011 revenue of $535.4 million, according to Thomson Reuters I/B/E/S.
“We invested heavily in hiring, development, and retention initiatives, as well as our business processes. These investments weighed on our margins, as did challenges we faced in Europe,” CEO L. Kevin Kelly said in a statement.
October-December net income was $5.2 million, or 29 cents a share, compared with $9.4 million, or 52 cents a share, a year ago.
Net revenue rose 16 percent to $127.2 million.
Analysts on average had expected earnings of 37 cents a share, on revenue of $124.5 million, according to Thomson Reuters I/B/E/S.
Shares of the company closed at $28.47 on Friday on Nasdaq. The stock has gained 28 percent since the company reported third-quarter results on Nov. 2.
