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FTI Consulting (FCN) Beats on Q3 Earnings, Raises 2021 View
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FTI Consulting, Inc. (FCN - Free Report) delivered impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results impressed the market, as the stock gained 2.2% since the earnings release on Oct 28.
Adjusted earnings per share (excluding 6 cents from non-recurring items) of $2.02 surpassed the Zacks Consensus Estimate by 42.3% and increased 31.2% on a year-over-year basis. The bottom line was positively impacted by a higher operating income.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
Total revenues of $702.2 million beat the consensus mark by 3.5% and increased 12.9% on a year-over-year basis. The uptick was driven by the positive impact of foreign currency translations, acquisition-related revenues and increased demand in the Forensic and Litigation Consulting, Technology, Corporate Finance & Restructuring and Economic Consulting segments.
Revenues by Segment
Forensic and Litigation Consulting revenues increased 22% year over year to $145.3 million. The surge was primarily driven the positive impact of exchange rates, acquisition-related revenues and higher demand for investigations, disputes and health solutions services. The segment contributed 20.7% to total revenues.
Strategic Communications revenues increased 31.1% year over year to $69.4 million. The uptick can be attributed to higher demand for corporate reputation and public affairs services, and favorable exchange rates. The segment contributed 9.9% to total revenues.
Technology revenues increased 10.4% year over year to $64.7 million. The upside resulted from higher demand for litigation, investigations, information governance services and the positive impact of exchange rates. The segment contributed 9.2% to total revenues.
Economic Consulting revenues were up 11.3% year over year to $172.5 million. The upside can be attributed to higher demand for non-M&A-related antitrust services, financial economics services and favorable exchange rates, partially offset by lower demand for M&A-related antitrust services. The segment contributed 24.6% to total revenues.
Corporate Finance & Restructuring revenues increased 5.8% year over year to $250.3 million. The uptick was mainly due to favorable exchange rates, higher demand for transactions and business transformation services, partially offset by lower demand for restructuring services. The segment contributed 35.6% to total revenues.
Operating Results
Adjusted EBITDA was $100.3 million, up 10.3% on a year-over-year basis. Increase in Adjusted EBITDA was primarily caused by higher revenues. Adjusted EBITDA margin contracted 30 basis points year over year to 14.3%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $342.5 million compared with the prior quarter’s level of $256.9 million. Long-term debt was $319.35 million compared with $391.6 million witnessed at the end of the previous quarter. The company generated $196.9 million of net cash from operating activities and CapEx was $24.7 million.
Raised 2021 Guidance
FTI Consulting raised its full-year 2021 guidance.
The company now expects revenues between $2.75 billion and $2.8 billion compared with the previous guidance of $2.7 billion and $2.8 billion. The midpoint of the raised guidance ($2.775 billion) is above the current Zacks Consensus Estimate of $2.77 billion.
Adjusted EPS is expected between $6.50 and $6.75 compared with the previous guidance of $6.00 and $6.50, the midpoint ($6.625) of which is lower than the current Zacks Consensus Estimate of $6.66.
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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FTI Consulting (FCN) Beats on Q3 Earnings, Raises 2021 View
FTI Consulting, Inc. (FCN - Free Report) delivered impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Better-than-expected results impressed the market, as the stock gained 2.2% since the earnings release on Oct 28.
Adjusted earnings per share (excluding 6 cents from non-recurring items) of $2.02 surpassed the Zacks Consensus Estimate by 42.3% and increased 31.2% on a year-over-year basis. The bottom line was positively impacted by a higher operating income.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. Quote
Total revenues of $702.2 million beat the consensus mark by 3.5% and increased 12.9% on a year-over-year basis. The uptick was driven by the positive impact of foreign currency translations, acquisition-related revenues and increased demand in the Forensic and Litigation Consulting, Technology, Corporate Finance & Restructuring and Economic Consulting segments.
Revenues by Segment
Forensic and Litigation Consulting revenues increased 22% year over year to $145.3 million. The surge was primarily driven the positive impact of exchange rates, acquisition-related revenues and higher demand for investigations, disputes and health solutions services. The segment contributed 20.7% to total revenues.
Strategic Communications revenues increased 31.1% year over year to $69.4 million. The uptick can be attributed to higher demand for corporate reputation and public affairs services, and favorable exchange rates. The segment contributed 9.9% to total revenues.
Technology revenues increased 10.4% year over year to $64.7 million. The upside resulted from higher demand for litigation, investigations, information governance services and the positive impact of exchange rates. The segment contributed 9.2% to total revenues.
Economic Consulting revenues were up 11.3% year over year to $172.5 million. The upside can be attributed to higher demand for non-M&A-related antitrust services, financial economics services and favorable exchange rates, partially offset by lower demand for M&A-related antitrust services. The segment contributed 24.6% to total revenues.
Corporate Finance & Restructuring revenues increased 5.8% year over year to $250.3 million. The uptick was mainly due to favorable exchange rates, higher demand for transactions and business transformation services, partially offset by lower demand for restructuring services. The segment contributed 35.6% to total revenues.
Operating Results
Adjusted EBITDA was $100.3 million, up 10.3% on a year-over-year basis. Increase in Adjusted EBITDA was primarily caused by higher revenues. Adjusted EBITDA margin contracted 30 basis points year over year to 14.3%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $342.5 million compared with the prior quarter’s level of $256.9 million. Long-term debt was $319.35 million compared with $391.6 million witnessed at the end of the previous quarter. The company generated $196.9 million of net cash from operating activities and CapEx was $24.7 million.
Raised 2021 Guidance
FTI Consulting raised its full-year 2021 guidance.
The company now expects revenues between $2.75 billion and $2.8 billion compared with the previous guidance of $2.7 billion and $2.8 billion. The midpoint of the raised guidance ($2.775 billion) is above the current Zacks Consensus Estimate of $2.77 billion.
Adjusted EPS is expected between $6.50 and $6.75 compared with the previous guidance of $6.00 and $6.50, the midpoint ($6.625) of which is lower than the current Zacks Consensus Estimate of $6.66.
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.
Performance of Some Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6%. The bottom line declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6%. The top line increased 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and rose 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1%. The top line increased 21.7% year over year on a reported basis and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.