FTI Consulting, Inc. (NYSE:FCN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
FTI Consulting, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 3.33% to $0.58 in the quarter versus EPS of $0.60 in the year-earlier quarter.
Revenue: Rose 4.63% to $414.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: FTI Consulting, Inc. reported adjusted EPS income of $0.58 per share. By that measure, the company missed the mean analyst estimate of $0.61. It beat the average revenue estimate of $413.36 million.
Quoting Management: Commenting on these results, Jack Dunn, FTI Consulting President and Chief Executive Officer said, “The most significant factor affecting the quarter’s performance and our reduced guidance for the year was slowing demand for bankruptcy and restructuring work in North America. Record levels of new speculative grade and structured finance offerings and the continuation of the Fed’s policy of quantitative easing have resulted in lower than expected default rates and demand for bankruptcy and restructuring services. On the other hand, the record level of highly levered debt outstanding over the long term should create the potential for significant engagements when interest rates and default rates regress to more normal levels.”
Key Stats (on next page)…
Revenue increased 1.82% from $407.18 million in the previous quarter. EPS decreased 1.69% from $0.59 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.63 and has not changed. For the current year, the average estimate has moved up from a profit of $2.52 to a profit of $2.53 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)