FTI Consulting, Inc. FCN reported unimpressive fourth-quarter 2024 results, wherein earnings and revenues missed the Zacks Consensus Estimate.

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Quarterly adjusted earnings per share of $1.56 missed the Zacks Consensus Estimate by 6.6% and decreased 31.6% from the year-ago quarter’s actual. The company reported revenues of $895 billion, which lagged the consensus estimate by 1.6% and decreased 3.2% on a year-over-year basis.

FTI Consulting, Inc. Price and EPS Surprise

FTI Consulting, Inc. price-eps-surprise | FTI Consulting, Inc. Quote

FCN’s Segmental Performance

Technology revenues decreased 10.2% year over year to $90.6 million. The decline was primarily due to lower demand for merger and acquisition (M&A)-related “second request” services.

Economic Consulting revenues remained flat at $206.1 million year over year, driven by higher M&A-related antitrust revenues, which were offset by lower international arbitration and non-M&A-related antitrust revenues.

Corporate Finance & Restructuring revenues declined 8.2% year over year to $335.7 million. The decrease in revenues was primarily due to lower demand for transformation & strategy and transactions services.

Strategic Communications revenues remained flat at $86.6 million year over year, driven by higher demand for financial communications services. This was offset by lower demand for corporate reputation services.

Forensic and Litigation Consulting revenues rose 6.3% year over year to $175.9 million. Acquisition-related revenues contributed $2.4 million in the quarter. Excluding acquisition-related revenues, the increase in revenues was primarily due to higher demand and realized bill rates for data and analytics and construction solutions services. 

FCN’s Margins Expand

Adjusted EBITDA came in at $73.7 million, down 42.1% on a year-over-year basis. The adjusted EBITDA margin declined 560 basis points year over year to 8.2%.

FCN’s Balance Sheet and Cash Flow Figures

FTI Consulting exited the quarter with a cash and cash equivalent balance of $660.5 million compared with the prior quarter’s $386.3 million. FCN generated $395.1 million of cash from operating activities in the quarter. The capital expenditure was $35.4 million.

FCN’s 2025 Guidance

FCN has revised its 2025 revenue and EPS guidance. The company now estimates revenues between $3.66 billion and $3.81 billion. The revised guided range's midpoint ($3.74 million) is lower than the current Zacks Consensus Estimate of $3.87 billion.

Moreover, the estimated EPS for full-year 2025 is now projected between $7.44 and $8.24. The revised guided range's midpoint ($7.84) is lower than the current Zacks Consensus Estimate of $8.63. The variance between EPS and Adjusted EPS guidance is related to the aforementioned first quarter of 2025 special charge, which the company estimates will be approximately $17 million or $0.36 per share.

FCN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results, as earnings and revenues surpassed the Zacks Consensus Estimate.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

Automatic Data Processing, Inc. ADP reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis.

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