FTI Consulting, Inc. (FCN Quick QuoteFCN - Free Report)  reported impressive fourth-quarter 2022 results with earnings and revenues beating the Zacks Consensus Estimate.

The better-than-expected results, however, failed to impress the market as the stock didn’t move much since the earnings release on Feb 23. The stock has gained 22.8% in the past year against the 11.2% decline of the industry it belongs to.

Adjusted earnings per share of $1.52 beat the Zacks Consensus Estimate by 14.3% and increased 34.5% on a year-over-year basis. Total revenues of $774.4 million surpassed the consensus mark by 5% and rose 14.5% on a year-over-year basis.

Quarterly Numbers in Detail

Forensic and Litigation Consulting revenues increased 16.2% year over year to $160.4 million. The uptick was primarily driven by higher demand for investigations, data & analytics, and health solutions services.

Strategic Communications revenues increased 3.7% year over year to $72.4 million. The uptick can be attributed to higher demand for public affairs and financial communications services.

Technology revenues increased 18.9% year over year to $76.8 million. The uptick was primarily driven by higher demand for M&A-related "second request" and investigation services.

Economic Consulting revenues declined marginally year over year to $172 million. The decline can be attributed to lower demand for financial economics services, partially offset by higher realization for merger and acquisition-related antitrust, and international arbitration services.

Corporate Finance & Restructuring revenues increased 26.5% year over year to $292.8 million. The uptick was primarily on higher demand for business transformation and restructuring services.

Operating Results

Adjusted EBITDA was $91.9 million, up 48.4% on a year-over-year basis. The adjusted EBITDA margin contracted 270 basis points year over year to 11.9%.

Balance Sheet and Cash Flow

FTI Consulting exited the quarter with cash and cash equivalents of $491.7 million compared with the prior quarter’s $327 million. Long-term debt was $315.2 million compared with $314.8 million witnessed at the end of the previous quarter. FCN generated $60.5 million of net cash from operating activities, while CapEx was $39.8 million.

2023 Guidance

FCN expects revenues between $3.33 billion and $3.47 billion, the mid-point ($3.4 billion) of which is above the Zacks Consensus Estimate of $3.35 billion.

Adjusted EPS is expected between $6.8 and $7.7, the mid-point ($7.25 billion) of which is below the Zacks Consensus Estimate of $7.39.

FTI Consulting currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Recent Performance of Some Other Business Services Companies

Robert Half International Inc. (RHI Quick QuoteRHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP Quick QuoteADP - Free Report)  reported better-than-expected second-quarter fiscal 2023 results.

ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago quarter.

Booz Allen Hamilton Holding Corp. (BAH Quick QuoteBAH - Free Report) reported impressive third-quarter fiscal 2023 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.