FTI Consulting (FCN) has announced strong quarterly results, exceeding both earnings and revenue expectations for the period ending June 2024. The company reported earnings of £1.86 per share, surpassing the Zacks Consensus Estimate of £1.56 per share. This represents a 19.39% earnings surprise, compared to £1.40 per share earned in the same period last year. These figures are adjusted for non-recurring items.
FTI Consulting's recent performance continues a trend of exceeding expectations. In the previous quarter, the business advisory firm delivered an earnings surprise of 26.70%, reporting £1.78 per share against an expected £1.40 per share. Over the past four quarters, the company has consistently outperformed consensus EPS estimates.
In addition to strong earnings, FTI Consulting reported revenues of £761.76 million for the quarter, exceeding the Zacks Consensus Estimate by 2.06%. This compares to £694.44 million in revenue during the same period last year. The company has also topped consensus revenue estimates in each of the last four quarters.
The sustainability of FTI Consulting's share price movement in the short term will depend heavily on management's commentary during the earnings call. Investors will be looking for insights into the factors driving the strong performance and guidance for future growth.
FTI Consulting shares have increased by approximately 15.7% since the beginning of the year, outperforming the S&P 500's gain of 13.8%.
Looking Ahead
While FTI Consulting has delivered impressive results so far this year, investors are naturally curious about the future prospects of the stock. While there are no definitive answers, a key indicator to consider is the company's earnings outlook.
This outlook encompasses current consensus earnings expectations for upcoming quarters, as well as the recent trends in these expectations. Empirical research highlights a strong correlation between short-term stock movements and changes in earnings estimate revisions.
Ahead of the earnings release, the estimate revisions trend for FTI Consulting was mixed. While these revisions could shift following the announcement, the current status translates to a Zacks Rank #3 (Hold) for the stock. This suggests that the shares are expected to perform in line with the market in the near future.
It will be interesting to observe how estimates for upcoming quarters and the current fiscal year evolve in the coming days. Currently, the consensus EPS estimate for the next quarter is £1.68 on £755.11 million in revenue, while the estimate for the current fiscal year stands at £6.64 on £3.00 billion in revenue.
Industry Outlook
The outlook for the Consulting Services industry can also significantly impact FTI Consulting's performance. Currently, the Zacks Industry Rank places Consulting Services in the bottom 35% of the 250+ Zacks industries. Research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
CBIZ Inc.
Another player in the Consulting Services industry, CBIZ (CBZ), is expected to report its results for the quarter ended June 2024 on 31 July. The company is projected to post earnings of £0.51 per share, representing a year-over-year increase of +16.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
CBIZ's revenues are expected to reach £348.88 million, up 9% from the same period last year.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Investors should consult with a qualified professional before making any investment decisions.