UPDATE 2-Huron Consulting Q1 profit up; slashes '08 outlook

(Recasts; adds '08 outlook, details, share movement)

May 6 (Reuters) - Huron Consulting Group Inc (HURN.O) posted a quarterly profit above market estimates, helped by a 32 percent rise in revenue from its health and education consulting segment, but slashed its 2008 outlook.

The weak outlook comes at a time when the credit crisis in the United States is widely being seen as a boon for consulting companies.

The consulting business is expected to flourish as the ongoing downturn in the economy has increased the probability of investigations, litigations and bankruptcies.

At the end of the fourth quarter, the financial services consulting company had forecast a very upbeat 2008 as it sought to gain from worsening credit and housing markets.

Shares of the company fell as much as 7 percent at 40.66, before recovering some losses to trade at $42.99 Tuesday morning on Nasdaq.

OUTLOOK DISAPPOINTS

For 2008, the company now expects earnings of $2.57 to $2.88 a share, on revenue of $590 million to $620 million. Earlier, it had expected earnings of $3.10 to $3.28 a share on revenue of $640 million to $670 million.

The company also forecast second-quarter earnings of 48 cents to 57 cents a share, on revenue of $140 million to $145 million.

Analysts were expecting earnings of 64 cents a share, on revenue of $148.6 million., for the second quarter.

Q1 RESULTS

The Chicago-based company said first-quarter net income was $10.2 million, or 56 cents a share, compared with $9.8 million, or 55 cents a share, in the year ago quarter.

Analysts had expected earnings of 54 cents a share, excluding items, according to Reuters Estimates.

Revenue from its health and education segment, which is the biggest contributor to total revenue, rose to $51.1 million from $38.9 million.

Total revenue rose 20 percent to $139.4 million, marginally above analysts' expectations of $139.1 million.

Huron had slashed its first-quarter earnings estimates in late March, citing weak financial consulting business. (Reporting by Sweta Singh; Editing by Amitha Rajan)