Huron Consulting profit dips in 2Q

Net income dropped to $9.8 million, or 54 cents per share for the three-month period ended June 30, down from $10.1 million, or 56 cents per share, in the year-ago period. The latest results did not include a one-time $2.3 million amortization paid in the prior year's quarter.

Analysts expected profit of 54 cents per share, according to a survey by Thomson Financial.

Revenue rose 21 percent to $143.4 million led by growth from its health and education consulting segment. The quarter's results beat Wall Street's expectations of $142.5 million in sales.

Huron saw its total direct costs and reimbursable expenses jump in the quarter to $98.6 million from $79.6 million, while its total operating expenses increased 25 percent to $37.1 million.

During the quarter, Huron acquired management consulting firm Stockamp & Associates for $219 million in cash and stock.

The company also began to lay off workers in its Corporate Consulting and Financial Consulting segments. Huron expects roughly $2 million in restructuring and severance charges.

Huron slashed its 2008 earnings view to $2.10 to $2.39 per share on revenue between $625 million to $650 million. Earlier it had expected earnings of $2.57 to $2.88 per share on revenue of $590 million to $620 million.

Shares of Huron tumbled $4.88, or 8.9 percent, to $49.77 in morning trading. Over the past 52 weeks, the stock has traded between $37.59 and $84.