FTI Consulting (FCN) Benefits Globally Despite High Costs
FTI Consulting Inc. FCN stock has gained 9.4% in the past six months.
FCN reported better-than-expected fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. Earnings per share of $2.28 surpassed the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million beat the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.
How is FTI Consulting Doing?
FTI Consulting's strength lies in its ability to assist organizations to navigate changes, overcome challenges and resolve disputes across diverse areas, including financial, operational, legal, regulatory, political and transactional matters. Further, the company is continuously expanding in business transformation, restructuring, transactions and other industry sectors. This makes it an excellent partner for global clients dealing with international arbitration issues. FTI Consulting’s global expansion remains strong and will likely continue. Partly due to these positives, FCN shares have gained 9.4% in the past six months.
We believe that FTI Consulting’s global operations will assist in the expansion to maximize its geographic footprint. The same contributes to the company’s top-line growth. In 2023, international businesses generated nearly 37% of its total revenues. The industrial and geographical diversification of its customer base helps curtail material loss risks.
FTI Consulting's endeavors to reward shareholders through share buybacks are impressive. In 2023, 2022 and 2021, the company repurchased shares worth $21 million, $85.4 million and $46.1 million, respectively. These initiatives instill investors’ confidence, thereby improving earnings per share.
FTI Consulting, Inc. Revenue (TTM)
FTI Consulting, Inc. revenue-ttm | FTI Consulting, Inc. Quote
The majority of FTI Consulting’s investments are toward hiring highly qualified professionals, as well as promoting and training individuals. Investments as such are necessary for exponential growth and benefits of the company in the long term. However, rising investments in people are likely to increase costs incurred by FCN, which will, in turn, affect bottom-line growth.
FTI Consulting's current ratio (a measure of liquidity) stood at 1.74 at the end of fourth-quarter 2023, lower than 2.21 at the end of the preceding quarter and 1.96 at the end of the year-ago quarter. A decreasing current ratio does not bode well.
Zacks Rank and Stocks to Consider
FTI Consultingcurrently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Block SQ and APi Group APG.
Block (SQ) flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
SQ has a long-term earnings growth expectation of 33%. SQ delivered a trailing four-quarter earnings surprise of 10.8%, on average.
APi Group currently carries a Zacks Rank of 2 (Buy). The company has a long-term earnings growth expectation of 17.9%.
APG delivered a trailing four-quarter earnings surprise of 5.1%, on average.
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