FTI Consulting, Inc.
FCN
delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Better-than-expected results impressed the market, as the stock gained 2.5% since the earnings release on Feb 24.
Adjusted earnings per share (excluding 6 cents from non-recurring items) of $1.13 surpassed the Zacks Consensus Estimate by 9.7% and increased 2.5% on a year-over-year basis.
Total revenues of $676.2 million beat the consensus mark by a slight margin and increased 7.9% on a year-over-year basis. The uptick was driven by higher demand across all business segments.
FTI Consulting, Inc. Price, Consensus and EPS Surprise
FTI Consulting, Inc. price-consensus-eps-surprise-chart
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FTI Consulting, Inc. Quote
Revenues by Segment
Forensic and Litigation Consulting revenues increased 8.5% year over year to $138 million. The surge was primarily driven by acquisition-related revenues and higher demand for investigations and health solutions services. The segment contributed 20.4% to total revenues.
Strategic Communications revenues increased 15.5% year over year to $69.9 million. The uptick can be attributed to a higher corporate reputation and public affairs services demand. The segment contributed 10.33% to total revenues.
Technology revenues increased 10.2% year over year to $64.6 million. The upside resulted from higher demand for investigations and litigation services. The segment contributed 9.5% to total revenues.
Economic Consulting revenues were up 7.4% year over year to $172.3 million. The upside can be attributed to higher demand for non-M&A-related antitrust services and financial economics services, partially offset by lower demand for M&A-related antitrust services. The segment contributed 25.5% to total revenues.
Corporate Finance & Restructuring revenues increased 5.3% year over year to $231.5 million. The uptick was mainly due to higher demand for business transformation and transactions services as well as an an increase in pass-through revenues and success fees, partially offset by lower demand for restructuring services. The segment contributed 34.2% to total revenues.
Operating Results
Adjusted EBITDA was $62 million, up 9.2% on a year-over-year basis. The increase in Adjusted EBITDA was primarily caused by higher revenues. Adjusted EBITDA margin contracted 390 basis points year over year to 13.1%.
Balance Sheet and Cash Flow
FTI Consulting exited the quarter with cash and cash equivalents of $494.5 million compared with the prior quarter’s level of $342.5 million. Long-term debt was $297.2 million compared with $319.35 million witnessed at the end of the previous quarter. The company generated $199.6 million of net cash from operating activities and CapEx was $16.2 million.
2022 Guidance
The company expects revenues between $2.920 billion and $3.045 billion. The midpoint of the guidance matches the current Zacks Consensus Estimate of $2.98 billion.
Adjusted EPS is expected between $6.40 and $7.20. The midpoint ($6.80) is lower than the current Zacks Consensus Estimate of $7.14.
FTI Consulting currently carries a Zacks Rank #4 (Sell). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sectorial Snapshot
Robert Half International
RHI
reported impressive third-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate. Quarterly earnings of $1.53 per share beat the consensus mark by 9.3% and soared 100% year over year.
Revenues of $1.71 billion surpassed the consensus mark by 4% and increased 44% year over year on a reported basis and 43% on an as-adjusted basis. RHI currently sports a Zacks Rank #1.
Automatic Data Processing
ADP
recently reported better-than-expected second-quarter fiscal 2022 results. Adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and rose 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins
ROL
reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share met the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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