FTI Consulting, Inc'
) net income of $23.5 million or 58 cents per share in second
quarter 2013 jumped over threefold from $7.7 million or 18 cents
per share in the year-ago quarter. The healthy year-over-year
increase in earnings was primarily attributable to a strong
performance by the Economic Consulting group and accretive
acquisitions. However, the reported earnings missed the Zacks
Consensus Estimate of 61 cents.
Total revenue in the reported quarter increased 4.6% year over
year to $414.6 million. Total quarterly revenue beat the Zacks
Consensus Estimate of $412 million. Adjusted EBITDA stood at
$74.2 million compared with $66.6 million in the prior-year
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Corporate Finance/Restructuring segment
reported revenues of $96.7 million versus $96.2 million in the
year-ago quarter. The marginal increase in revenues was buoyed by
acquisitions, but partially offset by decline in bankruptcy and
restructuring revenues in the North America and Asia Pacific
revenues improved 11.6% to $111.0 million in the quarter. The
upside was aided by strong demand for the segment's antitrust
litigation services in North America and Europe, Middle East and
Africa (EMEA) and international arbitration, regulatory and
valuation practices in EMEA.
Forensic and Litigation Consulting
segment revenues decreased 1.0% year over year to $105.1 million
due to weak demand for the segment's North America investigations
and trial services practices.
segment revenues were up 7.3% to $51.2 million. The increase in
revenues was driven by increased volume for M&A-related
second request services and continued growth in EMEA and North
segment revenues increased 8.4% year over year to $50.6 million
in the quarter, driven by higher project income in North America
At quarter-end, FTI Consulting had cash and cash equivalents of
$92.6 million with long-term debt of $717.0 million. Net cash
provided by operating activities in the quarter was $21.7 million
compared with $0.5 million in the prior-year quarter.
Additionally, the company completed a series of acquisitions,
aggregating $25.8 million.
The company expects Economic Consulting segment to perform well
in 2013 due to the potential merger and acquisition matters.
Based on current market conditions, the company expects revenues
to be in the range of $1.62 billion to $1.65 billion and adjusted
EPS in the range of $2.10 to $2.20.
FTI Consulting has a Zacks Rank #3 (Hold). Other stocks that look
promising and are worth considering now in the industry include
Information Services Group, Inc
), carrying a Zacks Rank #1 (Strong Buy), and
Franklin Covey Co
The Hackett Group, Inc
), both carrying a Zacks Rank #2 (Buy).