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What's in the Cards for FTI Consulting's (FCN) Q4 Earnings?

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FTI Consulting, Inc. FCN is scheduled to report fourth-quarter 2019 results on Feb 25, before the opening bell.

We observe that the stock has rallied 82.8% in the past year, outperforming the industry’s rise of 26.1%.


Let’s check out the expectations in detail.

Segmental Growth to Drive Top Line

Strength across all segments — Corporate Finance & Restructuring, Forensic and Litigation Consulting, Strategic Communications, Economic Consulting and Technology — is likely to have driven the company’s revenues in the fourth quarter. The Zacks Consensus Estimate for the metric stands at $530.06 million, indicating growth of 4.9% from the year-ago reported figure. 

Segment-wise, Corporate Finance & Restructuring revenues are likely to have performed well on higher demand for restructuring and business transformation and transactions services. Forensic and Litigation Consulting revenues are expected to have gained from higher demand for disputes and investigations services. Strategic Communications revenues might have benefited from rise in demand for project-based corporate reputation services in North America and Europe, the Middle East and Africa. Economic Consulting revenues are expected to have been driven by higher demand for non-merger and acquisition-related antitrust services. Revenues at the Technology segment are likely to have risen on an uptick in demand for global cross-border investigations and litigation services.

In third-quarter 2019, total revenues of $593.1 million increased 15.6% year over year.

Bottom Line to Improve Year Over Year

Higher operating profits in the Corporate Finance & Restructuring and Forensic and Litigation Consulting segments are likely to have drivenFTI Consulting’s fourth-quarter 2019 earnings. The Zacks Consensus Estimate for earnings is pegged at 94 cents per share, indicating year-over-yeargrowth of 13.3%.

In third-quarter 2019, adjusted earnings per share were $1.63, up 63% from the year-ago quarter.

What Our Model Says

Our proven Zacks model does not predict an earnings beat for FTI Consulting this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

FTI Consulting has an Earnings ESP of 0.00% and a Zacks Rank #3.

FTI Consulting, Inc. Price and EPS Surprise


FTI Consulting, Inc. Price and EPS Surprise

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

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings:

S&P Global (SPGI - Free Report) has an Earnings ESP of +0.88% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stericycle SRCL has an Earnings ESP of +6.39% and a Zacks Rank #3.

Verisk Analytics VRSK has an Earnings ESP of +2.34% and a Zacks Rank #3.

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