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FTI Consulting (FCN) Benefits From International Operations

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FTI Consulting (FCN - Free Report) has had an impressive run over the year-to-date period, wherein its shares have gained 9.5%, outperforming the 3.8% rally of the industry it belongs to.

FCN reported impressive first-quarter 2024 results. Quarterly earnings per share of $2.23 surpassed the Zacks Consensus Estimate by 26.7% and increased 66.4% on a year-over-year basis. Total revenues of $928.6 million beat the consensus mark by 4.9% and rose 15.1% from the year-ago quarter.

FTI Consulting, Inc. Price and EPS Surprise


FTI Consulting, Inc. Price and EPS Surprise

FTI Consulting, Inc. price-eps-surprise | FTI Consulting, Inc. Quote

How Is FCN Faring?

Increased demand for FTI Consulting’s products is expected to take place due to the rise inregulatory scrutiny and a proliferation of corporate litigation. Additionally, structural change has become an essential aspect in the rapidly evolving global markets as management teams look to ward off rivals, protect intellectual property rights, and conduct M&A to transform business, divestiture and other restructuring activities. These developments demand FTI Consulting’s specialized skill sets that are likely to boost its top line.

We expect the company’s international operations to help expand geographically and contribute to revenue growth. In 2023, it earned approximately 37% of its revenues from its international businesses. The industrial and geographical diversification of its customer base (throughout the United States and internationally) helps in risk management of incurring material losses.

FTI Consulting's endeavors to reward shareholders through share buybacks are impressive. In 2023, 2022 and 2021, the company repurchased shares worth $21 million, $85.4 million and $46.1 million, respectively. These actions not only instill investor confidence but also positively impact the bottom line.

The company’s current ratio (a measure of liquidity) stood at 2.46 at the end of first-quarter 2024, higher than 1.74 at the end of the preceding quarter. A current ratio of more than 1 indicates that the company will easily pay off its short-term obligations.

Zacks Rank & Other Stocks to Consider

FCNcurrently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are SPX Technologies, Inc. (SPXC - Free Report) and RB Global, Inc. (RBA - Free Report) .

SPX Technologies sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

SPXC has a long-term earnings growth expectation of 18%. It delivered a trailing four-quarter earnings surprise of 13.9%, on average.

RB Global currently flaunts a Zacks Rank of 1. It has a long-term earnings growth expectation of 7.2%.

RBA delivered a trailing four-quarter earnings surprise of 23.2%, on average.

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