Core Viewpoint - The consulting services industry is experiencing a positive demand environment driven by economic strength, encouraging service activities, and the success of remote work trends, making stocks like FTI Consulting, Exponent, and CBIZ attractive for investors [1][2]. Industry Overview - The consulting services industry encompasses companies providing professional advice in various fields such as management, IT, human resources, and marketing, serving multiple end markets [3]. - The industry is focusing on enhancing operational efficiency through technology, digital transformation, and data-driven decision-making to capitalize on post-pandemic economic recovery opportunities [4]. Growth Drivers - The consulting services industry has seen exponential growth since the 2008 financial crisis, supported by digital transformation and innovation, leading to stable revenues and profits [5]. - The sector benefits from a resilient economy, with GDP growth of 3.8% in Q2 2025, and strong non-manufacturing activities, as indicated by the Services PMI remaining above 50% [6]. Demand Environment - The consulting services industry has remained relatively unaffected by global uncertainties, with organizations seeking guidance to safeguard their workforce and strengthen consumer and shareholder relationships [7]. - The industry's early adoption of remote collaboration has allowed it to operate efficiently, leveraging AI-driven insights and digital platforms [7]. Industry Ranking - The consulting services industry holds a Zacks Industry Rank of 80, placing it in the top 33% of 243 Zacks industries, indicating solid near-term growth prospects [8][9]. Market Performance - Over the past year, the consulting services industry has underperformed the S&P 500, declining 27% compared to the S&P 500's gain of 18% [11]. - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 19.76X, which is below the S&P 500's 23.3X and the sector's 20.56X [12]. Company Highlights - **FTI Consulting**: The company generated nearly 36% of its revenues from international operations in 2024, with a compound annual growth rate of 8.5% from 2020 to 2024. The Zacks Consensus Estimate for 2025 EPS has increased by 4.3% to $8.43 [13][14]. - **Exponent**: Positioned to benefit from technological innovation, Exponent has seen year-over-year growth in dispute-related activities and is focusing on areas with substantial growth potential, such as digital health and AI usability. The Zacks Consensus Estimate for 2025 EPS has increased by 4.6% to $2.06 [15][16][17]. - **CBIZ**: As a major provider of financial, insurance, and advisory services, CBIZ is entering a growth phase supported by strategic expansion and the integration of Marcum, which is expected to enhance service offerings. The Zacks Consensus Estimate for 2025 EPS has increased marginally to $3.62 [17][18][19].

Core Viewpoint - UBS has raised its price target on Exponent (NASDAQ:EXPO) to $81 from $76 while maintaining a Neutral rating, following recent investor meetings with company management [1] Group 1: Management Outlook - Management conveyed a more optimistic outlook, suggesting a return to full-time equivalent employee growth could position Exponent for an improved revenue trajectory in 2026 [2] - UBS noted signs of a strengthening demand environment, particularly in proactive industries like consumer electronics, which are beginning to recover after a period of softness [2] Group 2: Financial Momentum - UBS indicated that the company's financial momentum appears to be accelerating into 2026 [3] - UBS argued that Exponent is better positioned compared to broader consulting and AI-related concerns due to its premium offerings and highly technical expertise [3] - Based on these factors, UBS stated that the setup for Exponent shares appears to be improving [3]

Core Insights - Figure Technology Solutions announced its subsidiary Figure Certificate Company plans to mint $YLDS, a registered public debt security on Solana, designed to maintain a fixed dollar price and provide a continuous yield backed by U.S. Treasuries and Treasury repo agreements [1] - The collaboration with Provenance Blockchain Foundation aims to enhance Solana's decentralized finance capabilities, allowing users to access yield from various Figure assets, including loans [2] - Figure's ecosystem has originated over $19 billion in home equity financing, making it the largest non-bank provider in this sector [3] Group 1 - $YLDS is a security-version of stablecoin, intended to maintain a fixed dollar price and offer a continuous yield [1] - Exponent Finance will be the first user of $YLDS, integrating it into their yield exchange platform on Solana [1] - Figure aims to expand its collaboration with Provenance Blockchain through additional Solana-native integrations [2] Group 2 - Figure's ecosystem includes DART for asset custody and lien perfection, and $YLDS as an SEC-registered yield-bearing stablecoin [4] - $YLDS offers immediate practical applications, powering Figure's Democratized Prime product and integrating with Exponent Finance's yield exchange protocol [4] - The stablecoin is designed to be a dependable base asset for developers in Solana's DeFi ecosystem, providing institutional-grade credibility due to Figure's compliance-first approach [4]

Core Insights - Exponent, Inc. (NASDAQ:EXPO) is recognized as one of the 15 overlooked dividend stocks to consider for investment [1] - Truist has maintained a Buy rating on Exponent while reducing its price target from $100 to $90, citing potential opportunities in artificial intelligence and risks from automation [2] - The company reported strong third-quarter performance with double-digit net revenue growth, particularly in dispute-related work across various sectors [3][4] Financial Performance - For Q3 2025, Exponent's total revenue increased by 8% to $147.1 million, while revenue before reimbursements rose by 10% to $137.1 million, compared to $136.3 million and $125.1 million in the same period last year [4] - The growth was driven by a diversified portfolio, with notable strength in sectors such as energy, transportation, life sciences, and construction [3][4] Industry Context - The integration of artificial intelligence into safety-critical systems presents new opportunities for Exponent as clients seek expertise in managing risks [3] - However, the consulting sector may face challenges from increased efficiencies due to automation, potentially impacting billable hours [2]

Core Insights - The article discusses overlooked dividend-paying stocks that present strong investment opportunities, emphasizing the historical performance of dividends in generating total returns across various market conditions [1][4]. Dividend Performance - Dividend-paying stocks have historically contributed nearly half (49.3%) of the broader market's total return since 1871, with the remainder coming from price appreciation [4]. - From May 1971 to February 2025, the S&P 500 delivered an average annual return of 118.6%, while reinvested dividends provided a return of 195.3%, highlighting the power of compounding [2]. Investment Methodology - The selection process focused on dividend-paying companies with a market capitalization above $2 billion that have raised their dividends for at least ten consecutive years, identifying firms with steady dividend policies and consistent shareholder returns [6]. Company Highlights - **California Water Service Group (NYSE:CWT)**: - Reported Q3 2025 revenue of $311.2 million, a 4% year-over-year increase, but fell short of analyst projections by over $10 million [11]. - Announced its 323rd consecutive quarterly dividend of $0.30 per share, extending a 58-year streak of annual dividend increases, with a compound annual growth rate of 7.7% over the past five years [12]. - Management indicated potential for a nearly 12% annualized growth in the regulated rate base if the proposed 2024 GRC and infrastructure improvement plan is approved [13]. - **Avista Corporation (NYSE:AVA)**: - Reported Q3 2025 revenues of $403 million, a 2.35% increase from the previous year, but missed analyst expectations by $14.7 million [15]. - Plans to issue approximately $120 million in long-term debt and up to $80 million in common stock in 2026 [15]. - CFO highlighted $363 million in capital expenditures for the first three quarters of the year, with total spending expected to reach $525 million for 2025 [16]. - **Exponent, Inc. (NASDAQ:EXPO)**: - Reported Q3 2025 total revenue of $147.1 million, an 8% increase, with revenue before reimbursements rising 10% to $137.1 million [21]. - Strong performance driven by growth in dispute-related work across various sectors, including energy and life sciences [20]. - The company is positioned to leverage opportunities from artificial intelligence while managing risks associated with technological changes [19].

Financial Performance - Revenues for Q3 2025 increased 8% to $147,120,000 compared to $136,279,000 in Q3 2024[81] - Net income rose 8% to $28,044,000 in Q3 2025, with diluted earnings per share increasing to $0.55 from $0.50[82] - Total revenues for the nine months ended October 3, 2025, increased by 3.0% to $434,589,000 compared to $421,748,000 for the same period in 2024[96] - For the three months ended October 3, 2025, revenues before reimbursements were $137,073,000, compared to $125,085,000 for the same period in 2024, representing a year-over-year increase of 9.6%[117] - Net income for the three months ended October 3, 2025, was $28,044,000, compared to $26,044,000 for the same period in 2024, reflecting a year-over-year increase of 7.7%[119] Segment Performance - Engineering and Other Scientific segment revenues increased by 7.6% to $124,016,000, driven by higher billable hours and billing rates[85] - Environmental and Health segment revenues increased by 9.8% to $23,104,000, attributed to increased regulatory consulting engagements[86] - Billable hours in the Engineering and Other Scientific segment decreased by 2% to 896,000, while utilization decreased to 75%[96] - Revenues in the Environmental and Health segment increased by 1.4% to $67,459,000, despite a 4% decrease in billable hours to 215,000[97] Expenses - Compensation and related expenses rose 7% to $87,726,000, accounting for 59.6% of total revenues[87] - Other operating expenses increased by 5.7% to $12,655,000, representing 8.6% of total revenues[89] - General and administrative expenses surged 44.2% to $7,654,000, primarily due to increased travel and personnel expenses[91] - Compensation and related expenses rose by 3.7% to $261,103,000, representing 60.1% of total revenues[98] - Other operating expenses increased by 9.3% to $36,822,000, accounting for 8.5% of total revenues[99] Operating Income - Total operating income increased by 12.3% to $29,038,000, with segment operating income for Engineering and Other Scientific rising by 13.7%[92] - Operating income for the total segments increased by 1.5% to $158,030,000, while total operating income decreased by 1.8% to $90,647,000[103] Tax and Other Income - Income tax expense increased by 6.9% to $10,573,000, with an effective tax rate of 27.4%[95] - Other income, net, decreased by 5.0% to $22,545,000, primarily due to a decrease in rental income[106] - Income taxes increased by 4.3% to $31,945,000, with an effective tax rate of 28.2%[107] Cash Flow and Assets - Net cash provided by operating activities was $76,148,000, down from $88,485,000 in the prior year[109] - Cash and cash equivalents as of October 3, 2025, were $207,380,000, a decrease from $258,901,000 at January 3, 2025[109] EBITDA - EBITDA for the three months ended October 3, 2025, was $38,837,000, which is 28.3% of revenues before reimbursements, a slight decrease from 28.6% in the same period last year[117] - For the nine months ended October 3, 2025, EBITDA was $113,366,000, down from $115,825,000 in the same period in 2024, indicating a decrease of 2.1%[119] - The company reported a decrease in EBITDA as a percentage of revenues for the first nine months of 2025, primarily due to increased travel and meals expenses related to a company-wide managers' meeting[118] Foreign Currency Risk - The company has foreign currency risk related to revenues and expenses in currencies such as the British Pound, Euro, Chinese Yuan, and Hong Kong Dollar, which may negatively affect financial results[121] - As of October 3, 2025, the company had net assets of approximately $13.8 million in British Pounds and $5.8 million in Hong Kong Dollars, among other currencies[122] - The company does not use foreign exchange contracts to hedge foreign currency exposures, which may lead to fluctuations in net income due to exchange rate changes[124] Interest Rate Risk Management - The company maintains an investment portfolio primarily consisting of high-quality debt instruments to manage interest rate risk, with a maximum effective maturity of 3 years[120]

Core Insights - Exponent (EXPO) reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.50 per share a year ago, resulting in an earnings surprise of +10.00% [1] - The company achieved revenues of $137.07 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 4.38% and increasing from $125.08 million year-over-year [2] - Exponent has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise for the previous quarter was +8.33%, with actual earnings of $0.52 per share compared to an expected $0.48 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.44, with projected revenues of $128.57 million, and for the current fiscal year, the EPS estimate is $1.97 on revenues of $530.2 million [7] Market Position - Exponent shares have declined approximately 26.6% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The Zacks Rank for Exponent is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Consulting Services industry, to which Exponent belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Exponent's stock may be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Total revenues increased by 8% to $147.1 million, while net revenues rose by 10% to $137.1 million compared to the same period in 2024 [10] - Net income for the quarter increased to $28 million, or $0.55 per diluted share, compared to $26 million, or $0.50 per diluted share in the prior year [10] - EBITDA increased by 9% to $38.8 million, with a margin of 28.3% of net revenues, slightly down from 28.6% in the same period of 2024 [11] - Billable hours increased by 4% year-over-year to approximately 376,000 [11] - Utilization improved to 74.1%, up from 73.4% in the same period last year [12] Business Line Data and Key Metrics Changes - The engineering and other scientific segment represented 84% of net revenues, with a 10% increase driven by demand in risk management and asset integrity services [14] - The environmental and health segment accounted for 16% of net revenues, increasing by 9% due to regulatory consulting engagements in the chemicals industry [15] Market Data and Key Metrics Changes - Reactive engagements saw robust growth due to increased dispute-related activity across various sectors, particularly in energy, transportation, and life sciences [4][5] - Proactive engagements were led by risk management and asset integrity projects in the utility sector, with strong demand for regulatory consulting in the chemicals sector [6] Company Strategy and Development Direction - The company is focused on capturing demand in transformative technologies, particularly in artificial intelligence and human-machine interaction [8] - Exponent aims to leverage its expertise in failure analysis and risk management to navigate technological disruptions and drive sustained growth [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand trends in consumer electronics and highlighted the importance of their diversified portfolio [4][7] - The company anticipates low to mid-single-digit revenue growth for the 4th Quarter of 2025, with a year-over-year revenue headwind of approximately 7% due to fewer workdays [16] Other Important Information - The company distributed $15.1 million to shareholders through dividends and repurchased $40 million of common stock [13] - A $100 million increase in the stock repurchase program was approved, reflecting confidence in the company's long-term growth trajectory [14] Q&A Session Summary Question: Thoughts on 2026 hiring plans - Management indicated strong momentum in recruiting, targeting a headcount growth of 4% to 6% in 2026, focusing on areas with growth such as digital health and autonomous vehicles [22][23] Question: AI integration and growth potential - AI is significantly penetrating the business, with applications across various sectors, and is expected to be balanced between proactive and reactive engagements [24][25] Question: Growth between proactive and reactive practices - The reactive side of the business has been the primary growth driver, with an 18% increase in the reactive business and flat growth in proactive engagements [26][27] Question: Impact of regulatory environment - The regulatory environment remains dynamic, with strong growth in chemical regulatory work, despite some delays in feedback from agencies [29][30] Question: Government shutdown impact - The company expects minimal impact from the government shutdown, as most of its federal contracts are ongoing and under contract [32] Question: Preliminary thoughts on revenue growth for next year - Management is optimistic about growth in 2026 but will provide specific guidance at the end of January or early February [33]

Financial Performance - FY24 revenue reached $559 million[8] - FY24 EBITDA margin was 28%[8] - FY24 EPS was $2.11[8] - The company paid quarterly dividend of $0.30[8] - The company returned $278 million to shareholders through dividend payments and repurchased shares[46] Growth and Diversification - The company has expanded and diversified across disciplines and industries for over 50 years[6] - The company has a diversified portfolio across various sectors including construction, consumer products, energy, transportation, life sciences & healthcare, and chemicals[18] - The company served 2,000 clients and completed 10,000 engagements in FY24[21] Key Trends and Solutions - The company is positioned to capitalize on increasing demand for a safer, healthier, more sustainable world[10] - The company offers solutions related to automation, electrification, energy transition, climate resilience, digital health, and environmental impact[23] 2025 Performance (YTD as of October 3rd) - Revenues Before Reimbursements increased by 3% from $394.7 million to $407.4 million[49] - Net Income decreased by 5% from $85.4 million to $81.2 million[49] 2025 Q3 Performance - Revenues Before Reimbursements increased by 10% from $125.1 million to $137.1 million[50] - Net Income increased by 8% from $26.0 million to $28.0 million[50]