Shares of FTI Consulting, Inc. (FCN) have gained an impressive 15% on strong earnings performance for third-quarter 2022, reported on Oct 27.
Adjusted earnings per share of $2.15 beat the Zacks Consensus Estimate by 5.4% and increased 6.4% on a year-over-year basis. Total revenues of $775.9 million missed the consensus mark by a slight margin but rose 10.5% on a year-over-year basis.
Quarterly Numbers in Detail
Forensic and Litigation Consulting revenues increased 10.1% year over year to $159.9 million. The uptick was primarily driven by higher demand for health solutions and investigation services, and higher realization.
Strategic Communications revenues increased 4.3% year over year to $72.4 million. The uptick can be attributed to higher demand for corporate reputation services.
Technology revenues increased 31.3% year over year to $84.9 million. The uptick was primarily driven by higher demand for M&A-related "second request" and investigation services.
Economic Consulting revenues were up 12% year over year to $193.2 million. The upside can be attributed to the higher realization from the recognition of revenues previously deferred and higher demand for non-merger and acquisition-related antitrust services.
Corporate Finance & Restructuring revenues increased 6% year over year to $265.4 million. The uptick was primarily on higher demand for business transformation and restructuring services.
Operating Results
Adjusted EBITDA was $99 million, down 1.3% on a year-over-year basis. Adjusted EBITDA margin contracted 150 basis points year over year to 12.8%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $327 million compared with the prior quarter’s $255.7 million. Long-term debt was $314.8 million compared with $314.3 million witnessed at the end of the previous quarter. FCN generated $128.3 million of net cash from operating activities, while CapEx was $13.3 million.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
2022 Guidance
FCN has trimmed its yearly guidance. The company now expects revenues to be between $2.965 billion and $3.025 billion compared with the previous anticipation of $2.92-$3.045 billion. The current Zacks Consensus Estimate is pegged at $2.99 billion.
Adjusted EPS is expected between $6.4 and $6.8 compared with the previous expectation of $6.4-$7.2. The current Zacks Consensus Estimate stands at $6.59.
FTI Consulting currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Shares of FTI Consulting, Inc. (FCN) have gained an impressive 15% on strong earnings performance for third-quarter 2022, reported on Oct 27.
Adjusted earnings per share of $2.15 beat the Zacks Consensus Estimate by 5.4% and increased 6.4% on a year-over-year basis. Total revenues of $775.9 million missed the consensus mark by a slight margin but rose 10.5% on a year-over-year basis.
Quarterly Numbers in Detail
Forensic and Litigation Consulting revenues increased 10.1% year over year to $159.9 million. The uptick was primarily driven by higher demand for health solutions and investigation services, and higher realization.
Strategic Communications revenues increased 4.3% year over year to $72.4 million. The uptick can be attributed to higher demand for corporate reputation services.
Technology revenues increased 31.3% year over year to $84.9 million. The uptick was primarily driven by higher demand for M&A-related "second request" and investigation services.
Economic Consulting revenues were up 12% year over year to $193.2 million. The upside can be attributed to the higher realization from the recognition of revenues previously deferred and higher demand for non-merger and acquisition-related antitrust services.
Corporate Finance & Restructuring revenues increased 6% year over year to $265.4 million. The uptick was primarily on higher demand for business transformation and restructuring services.
Operating Results
Adjusted EBITDA was $99 million, down 1.3% on a year-over-year basis. Adjusted EBITDA margin contracted 150 basis points year over year to 12.8%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $327 million compared with the prior quarter’s $255.7 million. Long-term debt was $314.8 million compared with $314.3 million witnessed at the end of the previous quarter. FCN generated $128.3 million of net cash from operating activities, while CapEx was $13.3 million.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
2022 Guidance
FCN has trimmed its yearly guidance. The company now expects revenues to be between $2.965 billion and $3.025 billion compared with the previous anticipation of $2.92-$3.045 billion. The current Zacks Consensus Estimate is pegged at $2.99 billion.
Adjusted EPS is expected between $6.4 and $6.8 compared with the previous expectation of $6.4-$7.2. The current Zacks Consensus Estimate stands at $6.59.
FTI Consulting currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the respective Zacks Consensus Estimate.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
The Interpublic Group of Companies (IPG - Free Report) reported third-quarter 2022 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate by 6.8%. The bottom line has been constant on a year-over-year basis.
IPG’s net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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