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FTI Consulting, Inc. (FCN - Free Report) reported impressive second-quarter 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate. However, the better-than-expected results failed to impress the market as the stock has declined 4% since the earnings release.
Quarterly earnings per share of $2.34 surpassed the Zacks Consensus Estimate by 19.4% and increased 33.7% year over year. Total revenues of $949.2 million beat the consensus mark by 2.1% and increased 9.8% from the year-ago quarter.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
Technology revenues increased 18.9% year over year to $115.9 million. The uptick was due to higher demand for M&A-related “second request,” partially offset by lower demand for investigations services.
Economic Consulting revenues jumped 14.4% from the year-ago quarter to $230.9 million. The rise was driven by higher demand and realized bill rates for M&A-related antitrust and financial economics services, partially offset by lower demand and realized bill rates for non-M&A-related antitrust services.
Corporate Finance & Restructuring revenues gained 9.5% year over year to $348 million. The upward movement was due to higher demand and realized bill rates for business transformation & strategy and transactions services, partially offset by lower restructuring revenues.
Strategic Communications revenues climbed 2.8% year over year to $84.9 million. The increase was primarily due to a $1.7 million increase in pass-through revenues, and in public affairs revenues, partially offset by lower corporate reputation revenues.
Forensic and Litigation Consulting revenues rose 2.9% year over year to $169.5 million. The uptick was backed by higher demand for dispute services and higher realized bill rates for construction solutions services, partially offset by lower demand for investigations services. Acquisition-related revenues constituted $1.9 million of these revenues.
Margins Expand
Adjusted EBITDA came in at $115.9 million, up 15.7% on a year-over-year basis. Adjusted EBITDA margin climbed 60 basis points year over year to 12.2%.
Key Balance Sheet and Cash Flow Figures
FTI Consulting exited the quarter with cash and cash equivalents of $226.4 million compared with the prior quarter’s $244 million. The company had a long-term debt of $60 million at the end of the quarter. FCN generated $135.2 million of cash from operating activities in the quarter. The capital expenditure was $10.1 million.
FCN has raised its 2024 revenues and EPS guidance ranges. The company now expects revenues to range between $3.7 billion and $3.79 billion compared with the prior expectation of $3.65 billion to $3.79 billion. The midpoint ($3.75 million) of the revised guided range is slightly lower than the current Zacks Consensus Estimate of $.3.76 billion. The company estimates EPS to range between $8.10 and $8.60, compared to the prior estimation of $7.75 to $8.50. The midpoint ($8.35) of the revised guided range is lower than the current Zacks Consensus Estimate of $8.48.
Recent Earnings Snapshots
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.
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FTI Consulting (FCN) Declines 4% Despite Q2 Earnings Beat
FTI Consulting, Inc. (FCN - Free Report) reported impressive second-quarter 2024 results, with both earnings and revenues beating the Zacks Consensus Estimate. However, the better-than-expected results failed to impress the market as the stock has declined 4% since the earnings release.
Quarterly earnings per share of $2.34 surpassed the Zacks Consensus Estimate by 19.4% and increased 33.7% year over year. Total revenues of $949.2 million beat the consensus mark by 2.1% and increased 9.8% from the year-ago quarter.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. Quote
All Segments Grow
Technology revenues increased 18.9% year over year to $115.9 million. The uptick was due to higher demand for M&A-related “second request,” partially offset by lower demand for investigations services.
Economic Consulting revenues jumped 14.4% from the year-ago quarter to $230.9 million. The rise was driven by higher demand and realized bill rates for M&A-related antitrust and financial economics services, partially offset by lower demand and realized bill rates for non-M&A-related antitrust services.
Corporate Finance & Restructuring revenues gained 9.5% year over year to $348 million. The upward movement was due to higher demand and realized bill rates for business transformation & strategy and transactions services, partially offset by lower restructuring revenues.
Strategic Communications revenues climbed 2.8% year over year to $84.9 million. The increase was primarily due to a $1.7 million increase in pass-through revenues, and in public affairs revenues, partially offset by lower corporate reputation revenues.
Forensic and Litigation Consulting revenues rose 2.9% year over year to $169.5 million. The uptick was backed by higher demand for dispute services and higher realized bill rates for construction solutions services, partially offset by lower demand for investigations services. Acquisition-related revenues constituted $1.9 million of these revenues.
Margins Expand
Adjusted EBITDA came in at $115.9 million, up 15.7% on a year-over-year basis. Adjusted EBITDA margin climbed 60 basis points year over year to 12.2%.
Key Balance Sheet and Cash Flow Figures
FTI Consulting exited the quarter with cash and cash equivalents of $226.4 million compared with the prior quarter’s $244 million. The company had a long-term debt of $60 million at the end of the quarter. FCN generated $135.2 million of cash from operating activities in the quarter. The capital expenditure was $10.1 million.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
2024 Guidance
FCN has raised its 2024 revenues and EPS guidance ranges. The company now expects revenues to range between $3.7 billion and $3.79 billion compared with the prior expectation of $3.65 billion to $3.79 billion. The midpoint ($3.75 million) of the revised guided range is slightly lower than the current Zacks Consensus Estimate of $.3.76 billion. The company estimates EPS to range between $8.10 and $8.60, compared to the prior estimation of $7.75 to $8.50. The midpoint ($8.35) of the revised guided range is lower than the current Zacks Consensus Estimate of $8.48.
Recent Earnings Snapshots
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.
EFX’s adjusted earnings were $1.82 per share, beating the consensus estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year.