FTI Consulting (FCN) Hits 52-Week High: Is More Upside Left?
Shares of consulting service provider FTI Consulting, Inc. FCN scaled a new 52-week high of $50.81 in yesterday’s trading session, before closing a tad lower at $48.50 for a healthy one-year return of 19.2%. This Zacks Rank #2 (Buy) stock has the potential for further price appreciation and looks poised to touch new highs in 2018.
Growth Drivers
FTI Consulting’s unique capabilities of bringing together damage assessment, accounting, economics, statistics and finance industries under a single umbrella make it an excellent partner for global clients dealing with international arbitration issues. This, in turn, leads to continued revenue growth from the existing international operations. FTI Consulting’s international expansion remains strong and will likely continue in the future as well.
Increased regulatory scrutiny and a proliferation of corporate litigation are also likely to increase the demand for the company’s products. Additionally, structural change has become a necessity in the rapidly evolving global markets as management teams look to fend off rivals, protect intellectual property rights and transform businesses via M&A, divestiture and other restructuring activities. These developments call for FTI Consulting’s specialized skill sets and are likely to boost its revenues.
FTI Consulting reported solid fourth-quarter 2017 results with healthy year-over-year increase in earnings and revenues. Adjusted earnings were $29.2 million or 78 cents per share compared with $9.9 million or 24 cents in the year-earlier quarter. The bottom line comfortably surpassed the Zacks Consensus Estimate of 50 cents. Total quarterly revenues came in at $467.7 million compared with $441.9 million in the year-ago quarter. The reported revenues outpaced the Zacks Consensus Estimate of $452 million.
Post earnings release, FTI Consulting’s current-quarter estimates were revised to 65 cents per share from 55 cents while that for the current year increased from $2.22 to $2.53. Moving forward, the company provided a bullish outlook for 2018 and expects earnings to lie between $2.35 and $2.65 per share on revenues of $1.83-$1.88 billion.
With continued growth impetus and core focus, investors’ confidence is likely to be boosted and share price is anticipated to hit new 52-week milestones every now and then in 2018.
Other Stocks to Consider
Other top-ranked stocks in the industry include CRA International, Inc. CRAI, sporting a Zacks Rank #1 (Strong Buy), CBIZ, Inc. CBZ and Exponent, Inc. EXPO, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CRA International has topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 28%.
CBIZ has topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 75.1%.
Exponent has topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 12.4%.
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