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FTI Consulting (FCN) Up on Global Business, Cash Strength

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FTI Consulting, Inc.’s (FCN - Free Report) shares have gained 39.7% over the past year, significantly outperforming the 26.2% growth of the Zacks S&P 500 composite.

The company recently delivered third-quarter 2021 adjusted earnings per share of $2.02 that surpassed the Zacks Consensus Estimate by 42.3% and increased 31.2% on a year-over-year basis.

Total revenues of $702.3 million beat the consensus mark by 3.5% and increased 12.9% on a year-over-year basis.

How is FTI Consulting Doing?

FTI Consulting’s potential to club diverse issues like damage assessment, accounting, economics, statistics, finance and industry under a single platform looks impressive. The company continues to pursue opportunities in areas such as business transformation services, transaction advisory business, restructuring, retail, construction, data and analytics, cyber business, information governance, and international arbitration. This makes it an excellent partner for global clients dealing with international arbitration issues, thereby helping the company generating continued revenue growth from its existing international operations.

In 2020, FTI Consulting earned almost 37% of its revenues from its international businesses. The industrial and geographical diversification of its customer base, throughout the United States and internationally, helps mitigate the risk of incurring material losses.

Meanwhile, FTI Consulting’s total debt to total capital ratio was 0.17 at the end of third-quarter 2021, lower than the previous quarter’s 0.21. Lower debt-to-capitalization ratio indicates that the proportion of debt to finance the company’s assets is declining and so is the risk of insolvency. Further, cash and cash equivalent balance of $343 million at the end of the quarter was enough to meet the long-term debt of $319 million. The company has no current debt.

Zacks Rank and Stocks to Consider

FTI Consulting currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budget has an expected earnings growth rate of around 398.1% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 673.8% so far this year. CAR has a long-term earnings growth of 27.5%. CAR sport a Zacks #1 Rank (Strong Sell).

Cross Country Healthcare has an expected earnings growth rate of around 397.8% for the current fiscal year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 236.9% so far this year. CCRN has a long-term earnings growth of 21.5%. CCRN sport a Zacks #1 Rank.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRA International has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 135.7% so far this year. CRA International has a long-term earnings growth of 15.5%. FDS carries a Zacks #2 Rank.

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