Exponent Q1 revenue rises, net income up

Overview

• US engineering consultancy's fiscal Q1 revenue rose 14% yr/yr

• Net income and EPS increased from prior-year quarter

• Company added $50 mln to stock repurchase program

Outlook

• Exponent sees Q2 revenues before reimbursements growing in the high-single digits

• Company expects Q2 EBITDA to be 27.0% to 27.8% of revenues before reimbursements

Result Drivers

• AI AND TECHNOLOGY INTEGRATION - Co said demand for user research studies from consumer electronics clients integrating AI drove growth

• RISK MANAGEMENT SERVICES - Co cited increased risk management work for utility clients evaluating asset performance under extreme weather conditions

• REACTIVE ENGAGEMENTS - Increased dispute-related and failure analysis demand in construction, energy, and medical devices contributed to results

Company press release: ID:nGNX95sfZz

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 Exponent Inc is $87.50, about 32.2% above its April 29 closing price of $66.18

• The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 31 three months ago

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