Navigant Posts Strong 1Q - Analyst Blog

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Navigant Consulting Inc . ( NCI ) has reported first-quarter 2012 adjusted earnings per share of 23 cents, surpassing the Zacks Consensus Estimate of 21 cents as well as the year-earlier earnings of 19 cents. GAAP net income per share came in at 22 cents compared with 17 cents in the year-ago quarter.

Navigant's total revenue jumped 9.4% year over year to $206.6 million. Revenues before reimbursements rose 9.9% year over year to $186.4 million. Consultant utilization rate in the quarter was flat at 79%.

Segment Performance

Business Consulting Services registered solid year-over-year growth of 19.8% to $95.4 million in the reported quarter, aided by strong performances by the healthcare and energy practices as well as Valuations and Restructuring teams. Dispute and Investigative Services crept up 5.4% year over year to $75.9 million. This was driven by strong demand in the field of credit crisis, increased technology Services practice and international matters.

Moreover, International Consulting revenue increased 9.3% year over year to $20.4 million, attributable to greater demand, particularly in construction disputes matters. However, Economic Consulting revenue slipped 19.0% to $15.0 million due to continued sluggishness.

On a sequential basis, all the segments performed well. Business Consulting services grew 6.2%; Dispute and Investigative Services increased 4.2%; Economic Consulting nudged up 2.4% and International Consulting rose 3.4%.

Financials

At quarter-end, Navigant's cash and equivalents decreased to $0.07 million from $3.0 million at the end of December 2011. The company's total non-current debt balances stood at $262.7 million versus $205.2 million as of year-end 2011.

During first quarter 2012, the company repurchased 232,000 shares at an average price of $13.07 per share.

Outlook

For full-year 2012, the company expects total revenue in the range of $800 million to $860 million and adjusted earnings per share between 88 cents and 98 cents.

Our Take

The company has consistently been outperforming the Zacks Consensus Estimates in the trailing four quarters and we expect the same trend to continue going forward given the opportunities associated with its key markets.

Navigant, which competes with FTI Consulting Inc . ( FCN ) and CRA International Inc. ( CRAI ), currently retains a Zacks #2 Rank that translates into a short-term Buy rating. We are maintaining our long-term Neutral recommendation on the stock.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CRAI , FCN , NCI

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