Navigant made a strong comeback this season after missing earnings
estimates for two successive quarters, with adjusted earnings
beating the Zacks Consensus Estimate by $0.05. The impressive
earnings growth was attributable to strong revenues coupled with
successful cost control initiatives. Going forward, the company's
strategy of inorganic expansion is likely to propel its growth
momentum. Navigant is also restructuring its business in order to
better align the capacity with demand and aims to diligently reduce
its operating expenses to improve profitability. However, stiff
competition, currency fluctuations, and regulatory stringencies are
likely to peg back its profitability to some extent. We maintain
our long-term Neutral recommendation for the stock as we anticipate
it to perform in line with the broader market.
Founded in 1983 and headquartered in Chicago, Illinois, Navigant
Consulting Inc. is a provider of specialized consulting services.
The company's staff of seasoned consultants and industry leaders
provides litigation support and investigative services, claims
management and analysis, corporate finance services, discovery
services, government contracting services as well as operations
advisory and management process outsourcing services. Navigant
Consulting primarily focuses on customers in industries undergoing
substantial regulatory and structural changes, including
construction, energy, financial services and healthcare. The
company went public in 2006.
Navigant derives majority of its revenue before reimbursement
from professional service fees. The company operates through four
segments. 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
The Disputes, Investigations & Economics segment provides a
wide range of services related to accounting, financial and
economic analysis, as well as discovery support, data management,
analytics and regulatory compliance. Its clientele consists of law
firms, accounting firms, corporate boards and government
The Financial, Risk & Compliance Advisory segment provides
strategic, operational, valuation, risk management, investigative
and compliance consulting services to clients. The clients are
principally from the highly regulated financial services industry,
including major financial and insurance institutions. This segment
also provides anti-corruption and restructuring consulting to
The Healthcare segment provides strategic, operational,
management and financial advisory services to health systems,
physician practice groups, payers and life sciences companies.
The Energy segment provides existing and prospective owners of
energy supply and delivery assets with the ability to evaluate and
enhance their entities. Its clientele consists of utilities,
independent power producers, financial entities, law firms,
regulators, and energy equipment providers.
Navigant Consulting Inc. (NCI): Read the Full
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