FTI Consulting's Q2 revenue beats expectations

Overview

• FTI Consulting Q2 revenue falls 0.6% yr/yr but beats analyst expectations

• EPS for Q2 2025 declines to $2.13 from $2.34 in prior year

• Company repurchased 2.19 mln shares, impacting cash and debt levels

Outlook

• FTI Consulting sees 2025 revenue between $3.660 bln and $3.760 bln

• Company expects 2025 EPS to range from $7.24 to $7.84

• FTI Consulting forecasts 2025 adjusted EPS between $7.80 and $8.40

Result Drivers

• REVENUE DECLINE - Revenues decreased by 0.6% to $943.7 mln, primarily due to lower revenues in Economic Consulting and Technology segments, partially offset by higher revenues in other segments

• SEGMENT GROWTH - Corporate Finance & Restructuring and Forensic and Litigation Consulting segments saw revenue growth driven by increased demand for restructuring, transactions services, and higher realized bill rates

• REVENUE DECLINE FACTORS - Economic Consulting and Technology segments faced revenue declines due to lower demand for M&A-related antitrust services and 'second request' services, respectively

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for FTI Consulting Inc is $178.00, about 5.9% above its July 23 closing price of $167.55

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nGNX4BnY0j