Back to top

Image: Bigstock

FTI Consulting Stock Barely Moves Post Q3 Earnings Miss

Read MoreHide Full Article

FTI Consulting, Inc. (FCN - Free Report) reported unimpressive third-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. There has been no impact of the disappointing results on the stock so far, as it hasn’t moved much since the earnings release on Oct. 24.

Quarterly earnings per share of $1.85 missed the Zacks Consensus Estimate by 10.2% and decreased 21% year over year. Total revenues of $926 million lagged the consensus mark 1.5% but increased 3.7% from the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

FTI Consulting, Inc. Price, Consensus and EPS Surprise

FTI Consulting, Inc. Price, Consensus and EPS Surprise

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

FCN’s Segmental Performance

Technology revenues increased 11.7% year over year to $110.4 million. The uptick was due to higher demand for M&A-related “second request” litigation, information governance, and privacy and security services, partially offset by lower demand for investigations services.

Economic Consulting revenues jumped 14.5% from the year-ago quarter to $222 million. The rise was driven by higher demand for M&A-related antitrust services, partially offset by lower demand for non-M&A-related antitrust services.

Corporate Finance & Restructuring revenues declined 1.7% year over year to $341.5 million. The drop was due to lower demand for business transformation and strategy services, more than offset by increased demand for transaction services.

Strategic Communications revenues declined 4.1% year over year to $83.3 million. The fall was due to a $3.1 million decrease in pass-through revenues.

Forensic and Litigation Consulting revenues rose 1.6% year over year to $168.8 million. The uptick was backed higher construction solutions and disputes revenues, which were partially offset by lower data and analytics and investigation revenues. Acquisition-related revenues constituted $1.9 million of these revenues.

FCN’s Margins Expand

Adjusted EBITDA came in at $102.9 million, down 13.3% on a year-over-year basis. The adjusted EBITDA margin declined 220 basis points year over year to 11.1%.

FCN’s Balance Sheet and Cash Flow Figures

FTI Consulting exited the quarter with a cash and cash equivalent balance of $386.3 million compared with the prior quarter’s $226.4 million. FCN generated $219.4 million of cash from operating activities in the quarter. The capital expenditure was $7 million.

FCN’s 2024 Guidance

FCN has revised its 2024 revenue and EPS guidance. The company now estimates revenues between $3.70 billion and $3.75 billion, down from the previous range of $3.70 billion-$3.79 billion. The revised guided range's midpoint ($3.73 million) is higher than the current Zacks Consensus Estimate of $3.71 billion.

Moreover, the estimated EPS for 2024 is now projected to be between $7.90 and $8.35 compared to the prior range of $8.10-$8.60. The revised guided range's midpoint ($8.13) is slightly higher than the current Zacks Consensus Estimate of $8.1. FCN does not anticipate any difference between adjusted EPS and EPS.

FCN currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax (EFX - Free Report) reported mixed third-quarter 2024 results. Earnings surpassed the Zacks Consensus Estimate, while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Omnicom Group Inc. (OMC) - free report >>

Equifax, Inc. (EFX) - free report >>

FTI Consulting, Inc. (FCN) - free report >>

Published in