FTI Consulting Stock Rallies 4.5% Following Q1 Earnings Beat

FTI Consulting, Inc. FCN reported mixed first-quarter 2025 results. Earnings beat the Zacks Consensus Estimate, while revenues lagged the same.Quarterly adjusted earnings per share of $2.29 beat the Zacks Consensus Estimate by 27.9% and increased 2.7% from the year-ago quarter’s actual. The company reported revenues of $898.3 billion, which lagged the consensus estimate by 0.3% and decreased 3.3% on a year-over-year basis.FTI Consulting, Inc. Price, Consensus and EPS Surprise FTI Consulting, Inc. price-consensus-eps-surprise-chart | FTI Consulting, Inc. QuoteFTI Consulting shares have risen 4.5% in response to its earnings beat, outperforming the 0.8% decline of the industry.Image Source: Zacks Investment ResearchFCN’s Segmental PerformanceTechnology revenues decreased 3.5% year over year to $97.2 million. The decline was primarily due to lower demand for merger and acquisition (M&A)-related “second request” services.Economic Consulting revenues dropped 12.1% year over year to $179.9 million due to lower demand for merger and acquisition (“M&A”)-related antitrust, financial economics and non-M&A-related antitrust services, partially offset by higher realized bill rates. Corporate Finance & Restructuring revenues declined 6.1% year over year to $343.6 million. The decrease in revenues was primarily due to lower demand and realized bill rates for transformation & strategy and transactions services.Strategic Communications revenues increased 7.2% year over year to $87 million. The rise in revenues was primarily due to a $3.5 million jump in pass-through revenues and higher demand for corporate reputation services.Forensic and Litigation Consulting revenues rose 8.3% year over year to $190.6 million. Acquisition-related revenues contributed $1.3 million in the quarter. Excluding acquisition-related revenues, higher realized bill rates for risk and investigations services, along with increased bill rates and demand for data & analytics services, primarily drove the increase in revenues.FCN’s Margins ExpandAdjusted EBITDA came in at $115.2 million, up 3.7% on a year-over-year basis. The adjusted EBITDA margin declined 80 basis points year over year to 12.8%.FCN’s Balance Sheet and Cash Flow FiguresFTI Consulting exited the quarter with a cash and cash equivalent balance of $151.1 million compared with the prior quarter’s $660.5 million. FCN generated $465.2 million of cash from operating activities in the quarter. The capital expenditure was $17.8 million.FCN’s GuidanceThe company expects its SG&A to be approximately $15 million to $20 million higher in each of the next two quarters than in the first quarter of 2025.For full-year 2025, FCN continues to expect the effective tax rate between 23% and 25%.FCN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Snapshot Fiserv, Inc. FI reported mixed first-quarter 2025 results. Earnings beat the Zacks Consensus Estimate, while revenues missed the mark.FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion missed the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the ZacksEarnings Calendar to stay ahead of market-making news.)The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. Earnings topped the Zacks Consensus Estimate, while revenues missed the mark.IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interpublic Group of Companies, Inc. (The) (IPG): Free Stock Analysis Report FTI Consulting, Inc. (FCN): Free Stock Analysis Report Fiserv, Inc. (FI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks