FTI Consulting, Inc. (FCN Quick QuoteFCN - Free Report)  delivered mixed second-quarter 2022 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.

Adjusted earnings per share of $1.43 missed the Zacks Consensus Estimate by 14.4% and decreased 17.8% on a year-over-year basis. Total revenues of $755 million beat the consensus mark by 2.3% and rose 6.1% on a year-over-year basis.

The stock has appreciated 15.9% over the past year against a 4.4% decline in the industry it belongs to.

Revenues by Segment

Forensic and Litigation Consulting revenues increased 9% year over year to $164.2 million. The uptick was primarily driven by acquisition-related revenues, higher demand for health solutions services and higher realized bill rates for investigations services.

Strategic Communications revenues increased 6% year over year to $71.9 million. The uptick can be attributed to higher demand for corporate reputation services.

Technology revenues decreased 1.1% year over year to $77.8 million. The negative impact of foreign exchange offset revenues increases from higher demand for information governance, privacy and security, and investigation services.

Economic Consulting revenues were down 10.5% year over year to $164 million. The downside can be attributed to a decline in the demand for M&A-related antitrust services and lower realization for non-M&A-related antitrust services.

Corporate Finance & Restructuring revenues increased 20% year over year to $277.1 million. The uptick was primarily on higher demand for business transformation, transactions services and restructuring services.

Operating Results

Adjusted EBITDA was $76.2 million, down 17.4% on a year-over-year basis. Adjusted EBITDA margin contracted 290 basis points year over year to 10.1%.

Balance Sheet and Cash Flow

FTI Consulting exited the second quarter with cash and cash equivalents of $255.7 million compared with the prior quarter’s $271.1 million. Long-term debt was $314.3 million compared with $328.9 million witnessed at the end of the previous quarter. FCN generated $35 million of net cash from operating activities, while CapEx was $13 million.

2022 Guidance

The company expects revenues to be between $2.92 billion and $3.045 billion, the midpoint ($2.98 billion) of which is higher than the current Zacks Consensus Estimate of $2.95 billion.

Adjusted EPS is expected between $6.4 and $7.2, below the current Zacks Consensus Estimate of $6.87.

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

Equifax (EFX Quick QuoteEFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same. 

EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.

IQVIA Holdings (IQV Quick QuoteIQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.

IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.

Omnicom Group (OMC Quick QuoteOMC - Free Report) reported impressive second-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.