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FTI Consulting (FCN) Gains From Global Business, Expenses High
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FTI Consulting, Inc. (FCN - Free Report) is currently benefiting from service diversification and geographic expansion.
The company recently delivered fourth-quarter 2022 adjusted earnings per share of $1.52, which surpassed the Zacks Consensus Estimate by 14.3% and increased 34.5% on a year-over-year basis. Total revenues of $774.4 million beat the consensus mark by 5% and increased 14.5% on a year-over-year basis.
FTI Consulting’s shares have gained 24% over the past year against the 12.4% decline of the industry it belongs to.
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 generating continued revenue growth from its existing international operations.
In 2022, the company 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.
FTI Consulting's current ratio (a measure of liquidity) stood at 1.96 at the end of fourth-quarter 2022, higher than the 1.91 recorded at the end of the prior-year quarter. The increase in the current ratio bodes well for FTI Consulting. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
FTI Consulting makes the majority of its investments in hiring highly qualified professionals, as well as promoting and training individuals. Such investments are necessary to enhance growth and are likely to benefit the company in the long term. However, escalating investments on people is likely to increase the costs incurred by the company and may dent the bottom-line growth at the initial stage.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold).
For first-quarter 2023, ICFI’s earnings are expected to increase 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year stands at $6.3 per share. This has been revised 7.3% upward in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised 3% upward in the past 60 days. The consensus estimate for the full year stands at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
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FTI Consulting (FCN) Gains From Global Business, Expenses High
FTI Consulting, Inc. (FCN - Free Report) is currently benefiting from service diversification and geographic expansion.
The company recently delivered fourth-quarter 2022 adjusted earnings per share of $1.52, which surpassed the Zacks Consensus Estimate by 14.3% and increased 34.5% on a year-over-year basis.
Total revenues of $774.4 million beat the consensus mark by 5% and increased 14.5% on a year-over-year basis.
FTI Consulting’s shares have gained 24% over the past year against the 12.4% decline of the industry it belongs to.
FTI Consulting, Inc. Price
FTI Consulting, Inc. price | FTI Consulting, Inc. Quote
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 generating continued revenue growth from its existing international operations.
In 2022, the company 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.
FTI Consulting's current ratio (a measure of liquidity) stood at 1.96 at the end of fourth-quarter 2022, higher than the 1.91 recorded at the end of the prior-year quarter. The increase in the current ratio bodes well for FTI Consulting. Moreover, a current ratio of more than 1.5 is usually considered good for a company. This may imply that the risk of default is less.
FTI Consulting makes the majority of its investments in hiring highly qualified professionals, as well as promoting and training individuals. Such investments are necessary to enhance growth and are likely to benefit the company in the long term. However, escalating investments on people is likely to increase the costs incurred by the company and may dent the bottom-line growth at the initial stage.
Zacks Rank and Stocks to Consider
FTI Consulting currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Business Services sector are ICF International (ICFI - Free Report) and Gartner, Inc. (IT - Free Report) .
For first-quarter 2023, ICFI’s earnings are expected to increase 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the full year stands at $6.3 per share. This has been revised 7.3% upward in the past 60 days. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised 3% upward in the past 60 days. The consensus estimate for the full year stands at $9.49 per share, which has been revised slightly upward in the past 60 days. The company currently carries a Zacks Rank #2 (Buy).