FTI Consulting, Inc. (FCN, Financial) has announced its financial results for the first quarter, revealing revenues of $898.3 million. This figure fell short of analyst predictions, which had estimated revenues at $906.68 million. Despite the revenue miss, the company's leadership remains optimistic about its position in the market.
Steven H. Gunby, President and CEO of FTI Consulting, emphasized the importance of the firm's comprehensive global capabilities in assisting clients during periods of disruption. As organizations worldwide navigate various challenges, FTI Consulting's expanding expertise continues to serve as a critical resource.
Gunby also highlighted the company's commitment to attracting top talent, which he believes is fundamental in meeting client needs in today's complex landscape. The firm’s performance this quarter underscores their dedication to supporting clients effectively during turbulent times.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for FTI Consulting Inc (FCN, Financial) is $173.50 with a high estimate of $178.00 and a low estimate of $169.00. The average target implies an upside of 2.96% from the current price of $168.51. More detailed estimate data can be found on the FTI Consulting Inc (FCN) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, FTI Consulting Inc's (FCN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for FTI Consulting Inc (FCN, Financial) in one year is $222.21, suggesting a upside of 31.87% from the current price of $168.51. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the FTI Consulting Inc (FCN) Summary page.
FCN Key Business Developments
Release Date: February 20, 2025
- Revenue: $3.7 billion, a 6% increase compared to $3.49 billion in 2023.
- GAAP Earnings Per Share (EPS): $7.81 compared to $7.71 in the prior year.
- Adjusted EPS: $7.99 compared to $7.71 in the prior year.
- Net Income: $280.1 million compared to $274.9 million in 2023.
- Adjusted EBITDA: $403.7 million or 10.9% of revenues, down from $424.8 million or 12.2% of revenues in 2023.
- Tax Rate: 20.2% in 2024, down from 23.3% in 2023.
- Fourth Quarter Revenue: $894.9 million, a decrease of 3.2% compared to Q4 2023.
- Fourth Quarter Net Income: $49.7 million compared to $81.6 million in Q4 2023.
- Fourth Quarter GAAP EPS: $1.38 compared to $2.28 in the prior year quarter.
- Fourth Quarter Adjusted EPS: $1.56 compared to $2.28 in the prior year quarter.
- Fourth Quarter Adjusted EBITDA: $73.7 million or 8.2% of revenues compared to $127.4 million or 13.8% of revenues in Q4 2023.
- Cash and Cash Equivalents: $660.5 million at December 31, 2024, compared to $328.7 million at December 31, 2023.
- Free Cash Flow: $360.2 million in 2024 compared to $174.9 million in 2023.
- 2025 Revenue Guidance: Estimated between $3.66 billion and $3.81 billion.
- 2025 GAAP EPS Guidance: Estimated between $7.44 and $8.24.
- 2025 Adjusted EPS Guidance: Estimated between $7.80 and $8.60.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FTI Consulting Inc (FCN, Financial) reported record revenues for the 10th consecutive year in 2024.
- The company achieved a 6% increase in revenues, reaching $3.7 billion compared to 2023.
- FTI Consulting Inc (FCN) maintained a strong balance sheet with no debt and increased cash and cash equivalents to $660.5 million by the end of 2024.
- The company continues to attract top talent, with significant interest from professionals wanting to join.
- FTI Consulting Inc (FCN) has a strong multiyear growth trajectory, with 10 consecutive years of adjusted EPS growth.
Negative Points
- FTI Consulting Inc (FCN) faced a slowdown in revenue growth in the second half of 2024, with a 3.2% decline in the fourth quarter.
- The company is experiencing significant headwinds in 2025, including senior departures in the US competition practice of its Compass Lexecon subsidiary.
- FTI Consulting Inc (FCN) anticipates a substantial impact on revenue and profitability due to these departures, potentially similar to a $35 million decline in adjusted EBITDA experienced in 2014.
- The company is cycling a particularly low tax rate from 2024, creating tough year-on-year comparisons.
- FTI Consulting Inc (FCN) has issued muted guidance for 2025, with expected revenue growth of only 1% and adjusted EPS growth of 2.6%.
