Fti Consulting (FCN) Announces Fourth Quarter And Full Year 2024 Financial Earnings Results

FTI Consulting, Inc. (FCN) today announced its financial results for the recent quarter, revealing a miss on both earnings and revenue estimates. The company reported quarterly revenue of $894.9 million, falling short of the expected $913.7 million. Additionally, FTI Consulting posted a quarterly diluted earnings per share of $1.38, which was below the anticipated $1.73. These results reflect challenges faced by the company in meeting market expectations.

Key Highlights:

• FTI Consulting reported record full-year 2024 revenues of $3.699 billion, a 6% increase from the previous year.
• Fourth quarter 2024 revenues were $894.9 million, a 3% decrease compared to the same quarter in the prior year.
• Full-year 2024 EPS was $7.81, with an adjusted EPS of $7.99, slightly up from $7.71 in the prior year.
• The company introduced 2025 guidance, estimating revenues between $3.660 billion and $3.810 billion, with EPS ranging from $7.44 to $8.24.
• CEO Steven H. Gunby expressed confidence in the company’s multiyear growth trajectory despite facing headwinds in the latter half of 2024.
• The company repurchased 51,717 shares of its common stock during the fourth quarter of 2024.
• FTI Consulting expects cost savings of approximately $70 million in 2025 due to staffing realignments.

Summary:

FTI Consulting, Inc. reported a strong financial performance for the full year 2024, achieving record revenues of $3.699 billion, marking a 6% increase from the previous year. This growth was driven by increased revenues across all business segments. However, the fourth quarter of 2024 saw a decline in revenues to $894.9 million, a 3% decrease compared to the same period in the prior year, primarily due to reduced demand in the Corporate Finance & Restructuring and Technology segments. Despite these challenges, the company reported a full-year EPS of $7.81 and an adjusted EPS of $7.99, slightly up from the previous year’s $7.71. CEO Steven H. Gunby acknowledged the headwinds faced in the latter half of 2024 but expressed confidence in the company’s robust multiyear growth trajectory.

Looking ahead, FTI Consulting introduced its 2025 guidance, projecting revenues between $3.660 billion and $3.810 billion, with EPS expected to range from $7.44 to $8.24. The company also anticipates cost savings of approximately $70 million in 2025 due to staffing realignments, which included a special charge of $8.2 million in the fourth quarter of 2024. Additionally, FTI Consulting repurchased 51,717 shares of its common stock during the fourth quarter, reflecting its commitment to returning value to shareholders. Despite the challenges, the company remains optimistic about its future growth prospects and continues to focus on its strategic initiatives to drive long-term success.

FTI Consulting, Inc. (FCN) has experienced a challenging period in terms of stock price performance, with a notable decline of 14.92% over the past six months and a slight dip of 1.05% over the past year. Despite these price setbacks, the company’s fundamental metrics paint a more optimistic picture. With a price-to-earnings ratio of 22.45, FTI Consulting is valued reasonably in the market, especially considering its impressive earnings per share (EPS) two-year compound annual growth rate (CAGR) of 16.87%. The company has also demonstrated robust revenue growth, with a two-year CAGR of 12.79%, and an exceptional free cash flow two-year CAGR of 104.50%, indicating strong cash generation capabilities. Furthermore, FTI Consulting’s return on invested capital stands at a healthy 13.74%, and its net profit margin of 8.37% suggests efficient cost management. While the recent price trends may cause some concern, the underlying financial health and growth prospects of FTI Consulting remain strong, potentially positioning the company for a rebound in the future.

FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. Its Corporate Finance & Restructuring segment provides business transformation, transactions, and turnaround and restructuring services. The company’s Forensic and Litigation Consulting segment offers. construction and environmental solution, data and analytics, dispute, health solution, and risk and investigation services. Its Economic Consulting segment provides. antitrust and competition economic, financial economic, and international arbitration services. The company’s Technology segment offers corporate legal operation; e-discovery and expertise; and information governance, privacy, and security services. Its Strategic Communications segment provides corporate reputation, financial communication, and public affairs services. The company serves aerospace and defense, agriculture, airlines and aviation, automotive and industrial, construction, energy, power and products, environmental solutions, financial services, healthcare and life sciences, hospitality, gaming and leisure, insurance, mining, private equity, public sector, real estate, retail and consumer products, telecom, media and technology, and transportation and logistics industries. The company was founded in 1982 and is headquartered in Washington, District of Columbia.