FTI Consulting Inc.'s
) reported second quarter 2012 adjusted earnings of 60 cents per
share, which comprehensively beat the Zacks Consensus Estimate of
55 cents and the year-ago earnings of 57 cents per share.
Total revenue in the reported quarter fell 1.1% year over year to
$396.2 million, due to unfavorable currency impact and also fell
short of the Zacks Consensus Estimate of $399.0 million. The
results were also lower due to weak performance of the Technology,
Forensic and Litigation Consulting, and Strategic Communications
segment, partially offset by improved performance of Economics
Consulting and Corporate Finance/Restructuring segment.
Adjusted EBITDA during the quarter was up 8.3% to $66.6 million
from $61.5 million in the year-ago quarter.
Corporate Finance/Restructuring reported improved results with
revenues climbing 10.2% to $112.3 million in the second quarter,
due to more bankruptcies in North America leading to increased
demands for restructuring services as well as higher demand across
the Asia-Pacific region.
Economic Consulting revenues climbed 5.3% to $99.5 million in the
quarter. The upside was aided by strong demand for antitrust and
M&A practice, and growth in financial and security related
litigation, particularly in North America.
Forensic and Litigation Consulting revenue declined 3.5% to $90.1
million as a result of sluggish demand in North America and EMEA,
partially offset by greater demand for global investigation as well
as data analytics practice in Latin America.
Technology segment revenues fell 16.5% year over year to $47.7
million, due to weaker demand for processing of electronically
stored information and lesser pricing for on-demand hosting and
Strategic Communications revenues dipped 12.9% year over year to
$46.6 million in the quarter, due to lower M&A-related projects
in Asia-Pacific and continued softness in EMEA and North America,
partially offset by increased activity in Latin America.
For 2012, the company expects revenues to be in the range of $1.56
billion and $1.58 billion and adjusted EPS to be between $2.15 and
As of June 30 2012, FTI Consulting's cash and cash equivalents
(excluding restricted cash) totaled $166.0 million, compared with
$264.4 million as of December 31, 2011. Shareholders' equity
totaled $1,150.3 million as of June 30, 2012, compared with
$1,106.2 million as of December 31, 2011.
Over the last 7 days, estimates have not budged, implying the
lack of near-term catalysts. However, management's earnings
guidance for 2012 is below the Zacks Consensus Estimates,
indicating a fall in estimates in the coming days, despite
better-than-expected results and the company's cost saving efforts
through restructuring. The Zacks Consensus Estimates for 2012 and
2013 are pegged at $2.28 and $2.77, respectively.
CRA INTL INC (CRAI): Free Stock Analysis Report
FTI CONSULTING (FCN): Free Stock Analysis
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FTI Consulting competes mainly with
CRA International Inc.
Navigant Consulting Inc.
). FTI Consulting currently retains a Zacks #3 Rank, which
translates into a short-term HOLD rating. We are also maintaining
our long-term Underperform recommendation on the stock.