Exponent Inc. (NASDAQ: EXPO ) is a little-followed consulting company. That said, it is a market leader and has consistently grown in the past decade. Consulting for safety, litigation, regulation, accidents, and failures is a unique business that grows with time. The dividend yield is low, the dividendI am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of dividend ...

Financial Performance - Revenues for 2024 increased by 4.1% to $558,514,000 compared to $536,766,000 in 2023[167] - Net income rose by 9% to $109,002,000 in 2024, up from $100,339,000 in 2023, with diluted earnings per share increasing to $2.11 from $1.94[162] - Total operating income increased to $119,557,000 in 2024, up 7.4% from $111,322,000 in 2023[176] - Other income increased by 13.2% to $27,813,000, primarily due to a $2,851,000 rise in interest income from cash and cash equivalents[178] - EBITDA for 2024 was $147,058,000, representing 28.4% of revenues before reimbursements, up from 27.7% in 2023[191] - Effective tax rate decreased to 26.0% in 2024 from 26.2% in 2023, with an adjusted rate of 27.9% excluding excess tax benefits[179] Segment Performance - Engineering and Other Scientific segment revenues increased by 5.1% to $469,544,000, accounting for 84.1% of total revenues[167] - Environmental and Health segment revenues decreased by 1.0% to $88,970,000, representing 15.9% of total revenues[167] - Engineering and Other Scientific segment operating income rose by 7.1% to $164,883,000, driven by increased billing rates and billable hours[176] Expenses - Compensation and related expenses increased by 3.2% to $330,011,000, constituting 59.1% of total revenues[170] - Other operating expenses rose by 11.2% to $46,196,000, making up 8.3% of total revenues[172] - General and administrative expenses decreased by 7.0% to $22,726,000, representing 4.1% of total revenues[174] Utilization and Operations - Utilization rate improved to 73% in 2024 from 69% in 2023, driven by better alignment of resources with demand[166] - Billable hours remained constant at 1,495,000 for both 2024 and 2023, with a slight increase in utilization[166] - Utilization rate improved to 73% in 2024, up from 69% in 2023, reflecting increased demand for services[192] Cash Flow and Investments - Net cash provided by operating activities was $144,537,000 in 2024, compared to $127,352,000 in 2023[181] - Cash and cash equivalents increased to $258,901,000 as of January 3, 2025, from $187,150,000 at December 29, 2023[181] - The company plans to continue investing in capital expenditures and may use cash reserves for stock repurchases and strategic acquisitions[186] Strategic Focus - The company continues to focus on expanding client relationships and enhancing its capabilities in response to increasing demand for multidisciplinary services[161] Foreign Currency Exposure - The company has net assets of approximately $24.2 million in British Pounds, indicating exposure to foreign currency risk[196]

Exponent, Inc. (NASDAQ:EXPO) Q4 2024 Earnings Conference Call February 6, 2024 4:30 PM ET Company Participants Joni Konstantelos - MD, Riveron Consulting Catherine Corrigan - President and CEO Rich Schlenker - EVP and CFO Conference Call Participants Andrew Nicholas - William Blair Tobey Sommer - Truist Josh Chan - UBS Operator Good day, and welcome to the Exponent, Inc. Q4 2024 Earnings Conference Call. Please note this event is being recorded. I would now like to turn the conference over to Joni Konstante ...

Exponent (EXPO) came out with quarterly earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.40 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15%. A quarter ago, it was expected that this engineering and scientific consulting company would post earnings of $0.48 per share when it actually produced earnings of $0.50, delivering a surprise of 4.17%.Over the last ...

Exponent (EXPO) Q4 2024 Earnings Call February 06, 2025 04:30 PM ET Company Participants Joni Konstantelos - Investor RelationsCatherine Corrigan - President and Chief Executive OfficerRich Schlenker - Executive Vice President and Chief Financial Officer.Tobey Sommer - Managing Director Conference Call Participants Andrew Nicholas - Equity Research AnalystJoshua Chan - Director, Equity Research Analyst Operator Please note this event is being recorded. I would now like to turn the conference over to Joni Ko ...

[Exponent Reports Fourth Quarter and Fiscal Year 2024 Financial Results](index=1&type=section&id=Exponent%20Reports%20Fourth%20Quarter%20and%20Fiscal%20Year%202024%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) Exponent's Q4 exceeded expectations, concluding a strong year with mid-single-digit net revenue growth and improved EBITDA margin, driven by proactive and reactive services, with 2025 demand anticipated from tech advancements and industry challenges - **Q4 results exceeded expectations**, with annual net revenue growth in the **mid-single digits** and **improved utilization and EBITDA margin**[2](index=2&type=chunk) - Key growth drivers in 2024 included **proactive services** for **consumer electronics and utilities**, and **reactive services** for **utilities and medical devices**, with the **chemicals industry showing improvement in Q4**[2](index=2&type=chunk) - Anticipated demand drivers for 2025 include **technological advancements in transportation**, **energy infrastructure challenges**, **digital health and wearables**, and **heightened chemical scrutiny**[3](index=3&type=chunk) [Fourth Quarter 2024 Financial Results](index=1&type=section&id=Fourth%20Quarter%20Financial%20Results) Exponent's 14-week Q4 2024 saw total revenues increase by **11.3%** to **$136.8 million** and net income rise to **$23.6 million**, with EBITDA at **$31.2 million** Q4 2024 vs. Q4 2023 Financial Highlights | Metric | Q4 2024 (14 weeks) | Q4 2023 (13 weeks) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $136.8M | $122.9M | +11.3% | | Revenues before Reimbursements | $123.8M | $113.9M | +8.7% | | Net Income | $23.6M | $20.9M | +12.9% | | Diluted EPS | $0.46 | $0.41 | +12.2% | | EBITDA | $31.2M | $30.5M | +2.3% | | EBITDA Margin (as % of net revenues) | 25.2% | 26.8% | -1.6 p.p. | - The fourth quarter of 2024 was a **14-week period**, compared to a **13-week period** in 2023, which contributed to the revenue increase[4](index=4&type=chunk) - The consolidated tax rate was **24.7%** in Q4 2024, down from **30.4%** in Q4 2023, influenced by a **$0.6 million tax benefit** from share-based awards[5](index=5&type=chunk) [Fiscal Year 2024 Financial Results](index=1&type=section&id=Fiscal%20Year%202024%20Financial%20Results) For the 53-week fiscal year 2024, total revenues increased by **4.1%** to **$558.5 million**, with net income rising to **$109.0 million** and a strong year-end cash position of **$258.9 million** Fiscal Year 2024 vs. Fiscal Year 2023 Financial Highlights | Metric | FY 2024 (53 weeks) | FY 2023 (52 weeks) | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $558.5M | $536.8M | +4.1% | | Revenues before Reimbursements | $518.5M | $497.2M | +4.3% | | Net Income | $109.0M | $100.3M | +8.7% | | Diluted EPS | $2.11 | $1.94 | +8.8% | | EBITDA | $147.1M | $137.7M | +6.8% | | EBITDA Margin (as % of net revenues) | 28.4% | 27.7% | +0.7 p.p. | - The company increased its quarterly cash dividend from **$0.28 to $0.30 per share**[9](index=9&type=chunk) - During fiscal year 2024, Exponent paid **$58.3 million in dividends** and closed the period with **$258.9 million in cash and cash equivalents**[10](index=10&type=chunk) [Business Segment Performance](index=1&type=section&id=Business%20Overview) The Engineering and Other Scientific segment, **84%** of FY2024 net revenues, grew **5%**, while the Environmental and Health segment, **16%** of net revenues, saw an **11%** Q4 increase driven by chemicals Segment Revenue Before Reimbursements Performance | Segment | % of FY24 Net Revenue | Q4 2024 YoY Growth | FY 2024 YoY Growth | | :--- | :--- | :--- | :--- | | Engineering and Other Scientific | 84% | +8% | +5% | | Environmental and Health | 16% | +11% | Approx. Flat | - Growth in the Engineering segment was driven by demand from the **consumer products and utilities industries**[12](index=12&type=chunk) - The Environmental and Health segment's strong Q4 growth was primarily due to a **resurgence in engagements within the chemicals industry**[13](index=13&type=chunk) [Business Outlook for Fiscal Year 2025](index=2&type=section&id=Business%20Outlook) Exponent forecasts low-single-digit revenue growth for FY2025 with an EBITDA margin of **26.25% to 27.0%**, despite Q1 declines and initial headcount headwinds Q1 2025 Outlook (vs. Q1 2024) | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements | Down in the low-single digits | | EBITDA % of net revenues | 25.0% to 26.0% | Full Fiscal Year 2025 Outlook (vs. FY 2024) | Metric | Guidance | | :--- | :--- | | Revenues before reimbursements | Grow in the low-single digits | | EBITDA % of net revenues | 26.25% to 27.0% | - The company is starting 2025 with a **5-6% headwind** in technical full-time-equivalent employees but expects to grow headcount by **1-2% sequentially each quarter**[14](index=14&type=chunk) - Fiscal year 2025 will be a **52-week year**, which poses a headwind for year-over-year comparisons against the **53-week fiscal year 2024**[14](index=14&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Statements of Income](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) The income statement reflects year-over-year increases in both quarterly and annual revenues and net income, with FY2024 total revenues reaching **$558.5 million** and net income **$109.0 million** Condensed Consolidated Statements of Income (in thousands) | | Quarters Ended | | Years Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Jan 3, 2025** | **Dec 29, 2023** | **Jan 3, 2025** | **Dec 29, 2023** | | **Revenues before reimbursements** | **$123,764** | **$113,872** | **$518,490** | **$497,189** | | Total revenues | $136,766 | $122,900 | $558,514 | $536,766 | | Operating income | $27,253 | $18,394 | $119,557 | $111,322 | | Income before income taxes | $31,328 | $30,088 | $147,370 | $135,896 | | **Net income** | **$23,589** | **$20,929** | **$109,002** | **$100,339** | | **Diluted Net income per share** | **$0.46** | **$0.41** | **$2.11** | **$1.94** | [Condensed Consolidated Balance Sheets](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of January 3, 2025, Exponent's total assets increased to **$777.3 million**, driven by a rise in cash to **$258.9 million**, with total liabilities at **$356.2 million** and equity at **$421.1 million** Condensed Consolidated Balance Sheets (in thousands) | | Jan 3, 2025 | Dec 29, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $258,901 | $187,150 | | Total current assets | $446,881 | $379,532 | | **Total Assets** | **$777,270** | **$646,777** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $163,183 | $161,909 | | **Total liabilities** | **$356,202** | **$290,692** | | **Total stockholders' equity** | **$421,068** | **$356,085** | | **Total Liabilities and Stockholders' Equity** | **$777,270** | **$646,777** | [Reconciliation of Non-GAAP Measures (EBITDA & EBITDAS)](index=5&type=section&id=EBITDA%20and%20EBITDAS) The reconciliation shows FY2024 EBITDA increased to **$147.1 million** and EBITDAS, excluding stock-based compensation, rose to **$170.3 million** EBITDA and EBITDAS Reconciliation (in thousands) | | Quarters Ended | | Years Ended | | | :--- | :--- | :--- | :--- | :--- | | | **Jan 3, 2025** | **Dec 29, 2023** | **Jan 3, 2025** | **Dec 29, 2023** | | Net Income | $23,589 | $20,929 | $109,002 | $100,339 | | *Plus: Taxes, Interest, D&A* | ... | ... | ... | ... | | **EBITDA** | **$31,233** | **$30,540** | **$147,058** | **$137,662** | | Stock-based compensation | $4,857 | $3,180 | $23,239 | $20,357 | | **EBITDAS** | **$36,090** | **$33,720** | **$170,297** | **$158,019** |

MENLO PARK, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today reported financial results for the fourth quarter and fiscal year 2024 ended January 3, 2025. "Our fourth quarter results exceeded expectations, capping off a solid year that demonstrated the resilience of the business. With a laser focus on aligning resources with demand, we grew net revenues in the mid-single digits for the year and at the same time delivered significantly improved utilization and EBITDA1 margin. We ...

MENLO PARK, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO) today announced that its Board of Directors has raised its quarterly cash dividend from $0.28 to $0.30 per share of common stock. The quarterly cash dividend of $0.30 per share of common stock is to be paid on March 21, 2025 to all common stockholders of record as of March 7, 2025. Exponent has paid, and expects to continue to pay, quarterly dividends each year in March, June, September, and December. Future declarations of ...

MENLO PARK, Calif., Jan. 16, 2025 (GLOBE NEWSWIRE) -- Exponent, Inc. (Nasdaq: EXPO), today announced that it will report Fourth Quarter and fiscal year 2024 financial results for the period ended January 3, 2025 following the close of the market on Thursday, February 6, 2025. On that day, Dr. Catherine Corrigan, Chief Executive Officer and President, and Richard Schlenker, Executive Vice President and Chief Financial Officer, will host a conference call and webcast at 4:30 p.m. ET (1:30 p.m. PT) to discuss ...

Economic strength, encouraging service activities, increased adoption, and the success of the work-from-home trend enable Zacks Consulting Services industry players to support the demand environment. Driven by these positives, investors interested in the industry would do well to keep stocks like Gartner, Inc. (IT) , Stantec Inc. (STN) and Exponent, Inc. (EXPO) in their portfolio. About the Industry Companies grouped under the Consulting Services category offer professional advice in management, IT, human r ...