Navigant Consulting Inc.
) reported third-quarter 2012 adjusted earnings per share of 23
cents, in line with the Zacks Consensus Estimate. GAAP net income
per share came in at 22 cents compared with 20 cents in the
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NAVIGANT CONSLT (NCI): Free Stock Analysis
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Navigant's total revenue grew 1.8% year over year to $208.1
million, which came ahead of the Zacks Consensus Estimate of
$202.0 million. Revenues before reimbursements nudged down 0.4%
year over year to $181.1 million. Consultant utilization rate in
the quarter was 73% versus 76% in the year-ago period.
The Healthcare segment rose 7.9% year over year to $36.7 million
driven by strong demand in the field of healthcare as well as
life science practices. Energy segment revenue grew 3.1% to $22.9
million aided by increased inflow of energy efficient
However, Disputes, Investigations & Economics segment revenue
fell 4.0% year over year to $82.3 million due to weaker business
from the dispute market partially offset by stronger performance
from technology and credit crisis related work from the financial
services sector. Overall sluggishness in the economy forced
clients to focus on cost controlling measures.
Financial, Risk & Compliance Advisory registered
year-over-year decline of 1.6% at $39.2 million in the reported
quarter, hurt by decreased revenues from the global
investigations & compliance business, compensated somewhat by
stronger revenues from mortgage servicing and restructuring
At quarter-end, Navigant had $1.2 million. The company's total
non-current debt balances stood at $243.8 million.
Retirement of CFO
Navigant's current Chief Financial Officer (CFO), Thomas Nardi,
plans to step down from his position in the first quarter of
2013. Thus, the company is now on a lookout for a suitable
For full-year 2012, the company narrowed its guidance for total
revenue to the range of $830-$845 million from the range of
$800-$860 million and adjusted earnings per share to the range of
88-95 cents from the range of 88-98 cents.
While NCI Consulting has been able to post better results in two
segments, its other two segments underperformed in the quarter.
Moreover, the cut in guidance for earnings as well as revenue
remains a matter of concern.
Navigant continues to face challenges on both the domestic and
international fronts. This is primarily attributable to the
difficulties in managing and staffing foreign operations, weaker
international construction practice as well as limited new
assignments and regulatory stringencies due to the ongoing
uncertainty in the global economy. The company also believes that
this bleak backdrop will linger in the near term before reviving
Navigant, which competes with
FTI Consulting Inc.
CRA International Inc.
), currently carries a Zacks #3 Rank that translates into a
short-term Hold rating.