Huron rises fast after restatement

Huron Consulting Group Inc., created in 2002 by former Arthur Andersen LLP partners, climbed the most in almost five years after restating several years of results in less than a month.

Huron rose $4.90, or 36 percent, to $18.59 at 12:02 p.m. in Nasdaq Stock Market trading. The shares earlier rose to $19.45, the biggest intraday percentage increase since the company's initial public offering in October 2004.

Huron said yesterday it restated its results for the fiscal years ended 2006, 2007 and 2008 and for the fiscal 2009 first quarter to correct accounting for acquisition-related payments. The Chicago-based company announced plans for the restatement on July 31. The Securities and Exchange Commission has started a probe into the company's acquisition-related matters, Huron said on Aug. 11.

"We believe this timely restatement could help to mitigate employee and client attrition," wrote Tobey Sommer, a Nashville, Tennessee-based analyst with SunTrust Robinson Humphrey, in a note to investors today. He called the restatement "surprisingly fast" and rates the stock "neutral."

The company said yesterday that second-quarter net income climbed more than eightfold to $9.65 million, or 47 cents a share, from $1.14 million, or 6 cents, a year earlier. Analysts, on average, projected profit of 46 cents.

Total revenue and reimbursable expenses climbed 15 percent to $179 million. The company also reiterated its full-year revenue forecast of as much as $680 million.