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FTI Consulting (FCN) Shares Jump 15% Post Q3 Earnings Beat
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Shares of FTI Consulting, Inc. ((FCN - Free Report) ) 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
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).
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.
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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FTI Consulting (FCN) Shares Jump 15% Post Q3 Earnings Beat
Shares of FTI Consulting, Inc. ((FCN - Free Report) ) 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
FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. Quote
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.