UPDATE 2-Heidrick & Struggles cuts '08 revenue view, shares fall
(Recasts; adds details, analyst comments; updates share movement)
BANGALORE Oct 14 (Reuters) - Executive search firm Heidrick & Struggles International Inc (HSII.O: Quotazione) cut its 2008 revenue outlook due to a weak economy and its significant exposure to the financial industry, sending its shares down 8 percent.
"Heidrick is negatively impacted by a weakening macro environment, which is resulting in reduced demand for their services," Robert W. Baird analyst Mark Marcon said by phone.
There has been a rise in the number of companies that are imposing hiring freezes, and Heidrick is more impacted than other search firms as it has a higher level of exposure to the financial industry, Marcon said.
Financial services accounted for about 27 percent of second-quarter revenue at the company, whose financial clients include Citigroup (C.N: Quotazione), Washington Mutual (WM.N: Quotazione) and Friends Provident FP.L.
Heidrick, which has about half its sales from international market, will also be affected by a weakening environment in Asia and hiring cutback by other industries, Marcon said.
The analyst said he sees a significant pullback in revenue for the third quarter and a steeper decline in the fourth for the company.
Heidrick shares fell $1.99 to $23.79 in midday trade on Nasdaq. Shares of the other executive recruiter Korn/Ferry International Inc (KFY.N: Quotazione) were down 9 percent on the New York Stock Exchange. Continua...