We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FTI Consulting, Inc. (FCN - Free Report) reported third-quarter 2016 adjusted earnings of $21.7 million or 52 cents per share compared with $22.2 million or 53 cents per share in the year-ago quarter, driven by lower revenues. The adjusted earnings, however, beat the Zacks Consensus Estimate by a couple of cents.
During the quarter, GAAP net income was $21.7 million or 52 cents per share compared with $10.3 million or 25 cents per share in the year-ago quarter. The increase was primarily due to lower expenses in the reported quarter.
Revenues for the quarter were down 3.8% year over year to $438 million from $455.5 million in the year-earlier quarter. Revenues also missed the Zacks Consensus Estimate of $451 million. Excluding the estimated negative impact of foreign currency translation, revenues declined 2% from the prior-year quarter.
Adjusted EBITDA for the quarter came in at $47.2 million, down from $56.1 million in the prior-year quarter.
Corporate Finance/Restructuring segment revenues were $110.6 million, down 2.5% year over year. Adjusted EBITDA for the segment was $17.8 million, down from $26.7 million in the year-ago quarter, drivenprimarily by lower utilization and higher costs related to the ramp up of experienced hires.
Economic Consulting revenues increased to $122.5 million from $114.5 million in the prior-year quarter, largely driven by higher demand and increased average realization in non-merger and acquisition related antitrust services in North America. Adjusted EBITDA came in at $18.4 million versus $16.7 million in the prior-year quarter.
Forensic and Litigation Consulting segment revenues fell to $115.0 million in the quarter from $116.2 million in the year-earlier quarter, driven by lower demand for health solutions. Adjusted EBITDA for the segment increased to $16.6 million from $13.4 million, due to higher success fees in the segment’s health solutions practice.
Technology segment revenues declined to $44.1 million from $55.6 million in the prior-year quarter. The decline in revenues was attributable to M&A-related activities and lower demand for litigation services. Adjusted EBITDA came in at $7.4 million compared with $10.8 million in the prior-year quarter. The decline in EBITDA was driven by lower realized pricing in consulting and lower demand for managed review services.
Strategic Communications segment revenues decreased to $45.8 million in the quarter from $55.7 million in the prior-year quarter. The decrease was primarily due to lower pass-through revenues. Adjusted segment EBITDA was $7.5 million compared with $8.7 million in the prior-year quarter.
Balance Sheet & Cash Flow
FTI Consulting had cash and cash equivalents of $225.2 million at Sep 30, 2016, compared to $105.0 million in the prior year period. Total debt was $475.0 million at quarter end, down from $520.0 million at Sep 30, 2015. Net cash provided by operating activities for the first nine months of 2016 was $111.6 million compared with $43.3 million in the year-ago period.
For 2016, the company revised its guidance. It currently expects revenues to be approximately $1.80 billion (compared with the previous projection of $1.80 billion to $1.87 billion). It reaffirmed 2016 guidance for adjusted EPS to be in the range of $2.15–$2.45.
FTI Consulting currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Accenture plc (ACN - Free Report) , Exponent Inc. (EXPO - Free Report) and Navigant Consulting Inc. . Both Accenture and Exponent carry a Zacks Rank #2 (Buy), whereas Navigantsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture has a modest earnings record, beating estimates thrice in the four trailing quarters, with an average positive surprise of 3.19%. The company’s share price has increased by approximately 10.49% year to date.
Exponent has a modest earnings record, beating estimates thrice in the four trailing quarters, with an average positive surprise of 9.71%. The company’s share price has increased by approximately 12.77% year to date.
Navigant has a solid earnings record, beating estimates on all occasions in the four trailing quarters, with an average positive surprise of 29.31%. The company’s share price has increased by approximately 41.97% year to date.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FTI Consulting (FCN) Beats Q3 Earnings, Misses Revenues
FTI Consulting, Inc. (FCN - Free Report) reported third-quarter 2016 adjusted earnings of $21.7 million or 52 cents per share compared with $22.2 million or 53 cents per share in the year-ago quarter, driven by lower revenues. The adjusted earnings, however, beat the Zacks Consensus Estimate by a couple of cents.
During the quarter, GAAP net income was $21.7 million or 52 cents per share compared with $10.3 million or 25 cents per share in the year-ago quarter. The increase was primarily due to lower expenses in the reported quarter.
Revenues for the quarter were down 3.8% year over year to $438 million from $455.5 million in the year-earlier quarter. Revenues also missed the Zacks Consensus Estimate of $451 million. Excluding the estimated negative impact of foreign currency translation, revenues declined 2% from the prior-year quarter.
Adjusted EBITDA for the quarter came in at $47.2 million, down from $56.1 million in the prior-year quarter.
Segment Details
Corporate Finance/Restructuring segment revenues were $110.6 million, down 2.5% year over year. Adjusted EBITDA for the segment was $17.8 million, down from $26.7 million in the year-ago quarter, drivenprimarily by lower utilization and higher costs related to the ramp up of experienced hires.
Economic Consulting revenues increased to $122.5 million from $114.5 million in the prior-year quarter, largely driven by higher demand and increased average realization in non-merger and acquisition related antitrust services in North America. Adjusted EBITDA came in at $18.4 million versus $16.7 million in the prior-year quarter.
Forensic and Litigation Consulting segment revenues fell to $115.0 million in the quarter from $116.2 million in the year-earlier quarter, driven by lower demand for health solutions. Adjusted EBITDA for the segment increased to $16.6 million from $13.4 million, due to higher success fees in the segment’s health solutions practice.
Technology segment revenues declined to $44.1 million from $55.6 million in the prior-year quarter. The decline in revenues was attributable to M&A-related activities and lower demand for litigation services. Adjusted EBITDA came in at $7.4 million compared with $10.8 million in the prior-year quarter. The decline in EBITDA was driven by lower realized pricing in consulting and lower demand for managed review services.
Strategic Communications segment revenues decreased to $45.8 million in the quarter from $55.7 million in the prior-year quarter. The decrease was primarily due to lower pass-through revenues. Adjusted segment EBITDA was $7.5 million compared with $8.7 million in the prior-year quarter.
Balance Sheet & Cash Flow
FTI Consulting had cash and cash equivalents of $225.2 million at Sep 30, 2016, compared to $105.0 million in the prior year period. Total debt was $475.0 million at quarter end, down from $520.0 million at Sep 30, 2015. Net cash provided by operating activities for the first nine months of 2016 was $111.6 million compared with $43.3 million in the year-ago period.
FTI CONSULTING Price, Consensus and EPS Surprise
FTI CONSULTING Price, Consensus and EPS Surprise | FTI CONSULTING Quote
Revised Guidance
For 2016, the company revised its guidance. It currently expects revenues to be approximately $1.80 billion (compared with the previous projection of $1.80 billion to $1.87 billion). It reaffirmed 2016 guidance for adjusted EPS to be in the range of $2.15–$2.45.
FTI Consulting currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the same industry include Accenture plc (ACN - Free Report) , Exponent Inc. (EXPO - Free Report) and Navigant Consulting Inc. . Both Accenture and Exponent carry a Zacks Rank #2 (Buy), whereas Navigantsports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture has a modest earnings record, beating estimates thrice in the four trailing quarters, with an average positive surprise of 3.19%. The company’s share price has increased by approximately 10.49% year to date.
Exponent has a modest earnings record, beating estimates thrice in the four trailing quarters, with an average positive surprise of 9.71%. The company’s share price has increased by approximately 12.77% year to date.
Navigant has a solid earnings record, beating estimates on all occasions in the four trailing quarters, with an average positive surprise of 29.31%. The company’s share price has increased by approximately 41.97% year to date.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>