FTI Consulting, Inc. (FCN - Free Report) reported better-than-expected fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
FCN’s earnings per share of $2.28 surpassed the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million beat the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.
The company’s shares have gained 19.4% in the past six months, outperforming the 14.3% rally of the industry it belongs to.
Segmental Revenues
Technology revenues increased 31.4% year over year to $100.9 million and outpaced our estimate of $90.8 million. The uptick was due to higher demand for M&A-related second request and litigation services.
Economic Consulting revenues jumped 19.8% from the year-ago quarter to $206.1 million, surpassing our model estimate of $184.3 million. Higher financial economics, non-M&A-related antitrust and international arbitration revenues led to this growth.
Corporate Finance & Restructuring revenues gained 19.7% year over year to $365.6 million and outpaced our estimate of $321.9 million. The upward movement was primarily due to higher volumes of restructuring activity in the United States, Germany, and the U.K. Also, higher success fees aided growth in revenues.
Strategic Communications revenues climbed 19.6% year over year to $86.6 million and surpassed our estimate of $78.7 million. The increase was primarily due to a demand surge for corporate reputation and Public Affairs services.
Forensic and Litigation Consulting revenues rose 11.9% year over year to $165.5 million, beating our estimate of $159.3 million. The uptick was backed by higher demand for investigations and construction solutions services.
Profitability Performance
Adjusted EBITDA came in at $127.4 million, up 38.5% on a year-over-year basis. This beat our estimate of $89.7 million, down 2.5% year over year.
The adjusted EBITDA margin climbed 190 basis points year over year to 13.8%. This compared favorably with our expectation of 10.7%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $303.2 million compared with the prior quarter’s $201.1 million. The company had no long-term debt for the quarter compared with $285 million at the end of the previous quarter.
FCN generated $383 million in net cash from operating activities in the quarter. Its capital expenditure was $6.3 million.
Guidance
For 2024, revenues are anticipated between $3.65 billion and $3.79 billion. The mid-point of the guided range ($3.72 billion) is above the Zacks Consensus Estimate of $3.66 billion.
Management expects EPS between $7.75 and $8.5. The mid-point of the guided range ($8.13) is slightly higher than the Zacks Consensus Estimate of $8.12.
FCN does not expect the adjusted EPS to differ from EPS.
The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Business Service Stocks
S&P Global Inc. (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
The adjusted EPS of $3.1 missed the Zacks Consensus Estimate by 0.6% but rose 23.2% from the year-ago quarter. Revenues of $3.2 billion beat the consensus estimate by 0.5% and increased 7.3% year over year. The uptick was aided by strong performances in all divisions.
IQVIA Holdings Analytics Inc. (IQV - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the consensus mark.
The adjusted EPS (excluding 11 cents from non-recurring items) of $2.65 per share beat the Zacks Consensus Estimate by 3.1% but increased 4.3% year over year. Revenues of $3.9 billion surpassed the consensus estimate by 2.2% and increased 3.5% from the year-ago reported figure.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
FTI Consulting, Inc. (FCN - Free Report) reported better-than-expected fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
FCN’s earnings per share of $2.28 surpassed the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million beat the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.
The company’s shares have gained 19.4% in the past six months, outperforming the 14.3% rally of the industry it belongs to.
Segmental Revenues
Technology revenues increased 31.4% year over year to $100.9 million and outpaced our estimate of $90.8 million. The uptick was due to higher demand for M&A-related second request and litigation services.
Economic Consulting revenues jumped 19.8% from the year-ago quarter to $206.1 million, surpassing our model estimate of $184.3 million. Higher financial economics, non-M&A-related antitrust and international arbitration revenues led to this growth.
Corporate Finance & Restructuring revenues gained 19.7% year over year to $365.6 million and outpaced our estimate of $321.9 million. The upward movement was primarily due to higher volumes of restructuring activity in the United States, Germany, and the U.K. Also, higher success fees aided growth in revenues.
Strategic Communications revenues climbed 19.6% year over year to $86.6 million and surpassed our estimate of $78.7 million. The increase was primarily due to a demand surge for corporate reputation and Public Affairs services.
Forensic and Litigation Consulting revenues rose 11.9% year over year to $165.5 million, beating our estimate of $159.3 million. The uptick was backed by higher demand for investigations and construction solutions services.
Profitability Performance
Adjusted EBITDA came in at $127.4 million, up 38.5% on a year-over-year basis. This beat our estimate of $89.7 million, down 2.5% year over year.
The adjusted EBITDA margin climbed 190 basis points year over year to 13.8%. This compared favorably with our expectation of 10.7%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $303.2 million compared with the prior quarter’s $201.1 million. The company had no long-term debt for the quarter compared with $285 million at the end of the previous quarter.
FCN generated $383 million in net cash from operating activities in the quarter. Its capital expenditure was $6.3 million.
Guidance
For 2024, revenues are anticipated between $3.65 billion and $3.79 billion. The mid-point of the guided range ($3.72 billion) is above the Zacks Consensus Estimate of $3.66 billion.
Management expects EPS between $7.75 and $8.5. The mid-point of the guided range ($8.13) is slightly higher than the Zacks Consensus Estimate of $8.12.
FCN does not expect the adjusted EPS to differ from EPS.
The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshots of Some Business Service Stocks
S&P Global Inc. (SPGI - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same.
The adjusted EPS of $3.1 missed the Zacks Consensus Estimate by 0.6% but rose 23.2% from the year-ago quarter. Revenues of $3.2 billion beat the consensus estimate by 0.5% and increased 7.3% year over year. The uptick was aided by strong performances in all divisions.
IQVIA Holdings Analytics Inc. (IQV - Free Report) reported mixed fourth-quarter results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the consensus mark.
The adjusted EPS (excluding 11 cents from non-recurring items) of $2.65 per share beat the Zacks Consensus Estimate by 3.1% but increased 4.3% year over year. Revenues of $3.9 billion surpassed the consensus estimate by 2.2% and increased 3.5% from the year-ago reported figure.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Get the latest research report on FCN - FREE
Get the latest research report on SPGI - FREE
Get the latest research report on IQV - FREE