FTI Consulting shares hit record high after Q3 results beat estimates

FTI Consulting

26/10/2023 20:04

By Chibuike Oguh
       NEW YORK, Oct 26 (Reuters) - Shares of FTI Consulting
 FCN.N  rose by more than 16% to an all-time-high on Thursday
after the business and communications consultancy reported
third-quarter results that beat analyst estimates amid increased
demand for its services. 
   FTI Consulting's revenue jumped 15.1% to $893.26 million
while earnings per share rose 9% to $2.34 as the company
recorded higher billing rates across its major business lines,
including corporate restructuring, communications, technology,
investigations and litigation consulting. The company also
raised the lower end of its full year revenue forecast. 
   That result exceeded the average analyst estimate of $850.65
million and $1.84 per share, according to LSEG data.
   FTI Consulting's stock hit $214.58 following the result, an
all-time high. It has now gained nearly 33% year-to-date and was
last up 14.7% - on track to make its biggest daily percent gain
since April 28, 2016, per LSEG data.
   The median price target of the three analysts covering FTI
Consulting's stock is $199.50, and their current recommendation
is "buy", LSEG data shows. 
   FTI Consulting's revenue has been growing since the first
half of the year even as its costs remained flat amid an uptick
in staff attrition, Chief Executive Steven Gunby said during an
analyst earnings call on Thursday. 
   "We continue to make progress against inflation. We also had
an uptick in attrition, both voluntarily and performance
related, and we tightened hire as we normally do in places where
we had low utilization," Gunby said. 
    
   

 (Reporting by Chibuike Oguh in New York; Editing by Cynthia
Osterman)
 ((Chibuike.Oguh@thomsonreuters.com; +332-219-1834; Reuters
Messaging: chibuike.oguh.thomsonreuters.com@reuters.net))