Navigant Consulting Inc.
) reported second-quarter 2012 adjusted earnings per share of 21
cents, flat year over year but below the Zacks Consensus Estimate
of 24 cents. GAAP net income per share came in at 18 cents compared
with 21 cents in the year-ago quarter.
Navigant's total revenue grew 5.2% year over year to $204.6
million, which fell short of the Zacks Consensus Estimate of $207.0
million. Revenues before reimbursements rose 4.7% year over year to
$181.5 million. Consultant utilization rate in the quarter was 73%
versus 80% in the year-ago period.
In second quarter 2012, Navigant modified its business segments to
Disputes, Investigations & Economics, Financial, Risk &
Compliance Advisory, Healthcare and Energy. Its previous segments
were Business Consulting services, Dispute and Investigative
Services, Economic Consulting and International Consulting.
Financial, Risk & Compliance Advisory registered solid
year-over-year growth of 41.3% to $52.8 million in the reported
quarter, aided by strong performances in mortgage servicing area.
The Healthcare segment rose 13.1% year over year to $40.8 million
driven by strong demand in the field of healthcare as well as life
However, Disputes, Investigations & Economics segment
revenue fell 9.0% year over year to $86.9 million due to weaker
business from certain litigation related matters partially offset
by stronger performance from technology and credit crisis related
services. Energy segment revenue slipped 5.5% to $24.0 million due
to late commencement of a few major engagements.
At quarter-end, Navigant had zero cash balance. The company's
total non-current debt balances stood at $247.4 million versus
$205.2 million as of year-end 2011.
During second quarter 2012, the company repurchased over 300,000
For full-year 2012, the company reiterated its guidance for total
revenue in the range of $800-$860 million and adjusted earnings per
share between 88-98 cents.
While NCI Consulting has been able to post strong results in some
segments, other segments underperformed in the quarter. Moreover,
the earnings as well as revenue miss remain a cause of concern.
Navigant, which competes with
FTI Consulting Inc.
CRA International Inc.
), currently retains a Zacks #3 Rank that translates into a
short-term Hold rating. We are maintaining our long-term Neutral
recommendation on the stock.
CRA INTL INC (CRAI): Free Stock Analysis Report
FTI CONSULTING (FCN): Free Stock Analysis
NAVIGANT CONSLT (NCI): Free Stock Analysis
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