RIYADH, Saudi Arabia, Jan. 28, 2025 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the appointment of Wael Osman as a Senior Managing Director in the firm’s Corporate Finance & Restructuring segment in Saudi Arabia, which will strengthen the firm’s tax offering in the Middle East. In his role at FTI Consulting, Mr. Osman will lead the launch of the tax practice in Saudi Arabia, supporting the firm’s growing regional client base on tax matters as they operate and expand businesses in th ...

Global CFO Sentiment and Expectations - Nearly three-quarters (72%) of CFOs expect revenue growth of 10% or more over the next 12 months [1] - More than three-quarters (77%) of CFOs from larger companies (revenues > $5 billion) remain highly optimistic about revenue growth due to supply chain improvements and favorable market conditions [3] - Mid-market firms (revenues between $100 million and $1 billion) show a decline in optimism, with only 67.5% of CFOs predicting double-digit growth for 2025, down from 76% in 2024, attributed to rising costs, increased competition, and talent shortages [4] CFO Role Evolution and Strategic Priorities - CFO roles have expanded beyond traditional financial stewardship, with increased emphasis on strategic planning to navigate technological advancements and evolving business models [5] - CFOs are actively driving growth through finance-led decision support and taking a more significant role in business strategy [6] - Cybersecurity is ranked among the top three strategic priorities for CFOs globally, with 75% of North American respondents citing cyber attacks as a top challenge [8] - CFOs are increasingly investing in AI tools, with 87% planning to use AI within the next 12 months to enhance predictive capabilities [8] Operational Trends and Challenges - Outsourcing of finance functions has increased by 11% from 2024 to 2025, reflecting a growing reliance on external capabilities to enhance operational efficiency and reduce costs [8] - CFO turnover rates are shifting, with a 5% increase in respondents believing CFO tenure is five years or longer, indicating organizations value strategic leadership from CFOs in navigating complex challenges [8] - Forecasting accuracy remains a critical area for improvement, with 85% of CFOs identifying it as a primary focus [8] Company Overview - FTI Consulting is a global business advisory firm with over 8,300 employees across 34 countries, generating $3.49 billion in revenues during fiscal year 2023 [7]

WASHINGTON, Jan. 21, 2025 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the release of its 2025 Global CFO Report, which reveals almost three-quarters (72%) of Chief Financial Officers expect revenue growth of 10% or more over the next 12 months. The survey, which collected the views of 655 senior finance executives across North America; Europe, the Middle East and Africa; Asia; and Australia, was conducted by the firm’s Office of the CFO Solutions practice in collaboration with CFO D ...

Core Insights - 79% of industry leaders express optimism about the healthcare and life sciences sector, an increase of 11% from the previous year [1] - 66% of leaders anticipate higher M&A activity in 2025, with 40% expecting improved capital-raising capabilities, reflecting renewed confidence in deal-making [2] - The industry is focusing on acquiring late-stage assets, particularly in obesity treatments, immuno-oncology, gene editing, and AI-powered drug discovery [3] Challenges and Risks - Economic uncertainty (38%) is viewed as the primary challenge, followed by cybersecurity incidents (23%) and political uncertainty (22%) [3] - Political uncertainty has gained attention due to potential implications of the U.S. presidential election [3][4] - 68% of respondents have a crisis communications plan, and 53% have engaged in crisis simulations, indicating increased preparedness for cybersecurity threats [5] Political Landscape - Nearly 60% of respondents believe a potential second Trump administration would positively impact their business [4] - Industry leaders expect a focus on reducing federal regulations and promoting market-based solutions, although significant reforms may face political hurdles [5] Survey Methodology - The survey was conducted online with 250 decision-makers in the healthcare and life sciences sector from September 24 to October 9, 2024 [7] - 43% of respondents represent large companies with over 250 employees, and approximately 35% are from publicly listed companies with an average market cap of $5 billion [7]

79% of Industry Leaders Feel Optimistic About Industry’s Potential Economic Uncertainty, Cybersecurity Incidents and Political Uncertainty Seen as Key Challenges Industry Increasingly Investing in Cybersecurity Preparedness WASHINGTON, Dec. 19, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the results of its U.S. Healthcare & Life Sciences Industry Outlook 2025, which found that after years of tempered expectations, 79% of leaders are increasingly optimistic about the industry a ...

Core Insights - FTI Consulting reported revenue of $926.02 million for the quarter ended September 2024, reflecting a year-over-year increase of 3.7% [1] - The company's EPS was $1.85, down from $2.34 in the same quarter last year, indicating a decline in profitability [1] - Revenue fell short of the Zacks Consensus Estimate of $940.14 million, resulting in a surprise of -1.50% [1] - The EPS also missed the consensus estimate of $2.06, with a surprise of -10.19% [1] Revenue Performance by Segment - Revenue-Generating Headcount: 6,659, exceeding the average estimate of 6,620 [1] - Revenues from Technology: $110.40 million, below the estimated $114.10 million, but up 11.7% year-over-year [1] - Revenues from Strategic Communications: $83.29 million, below the estimated $85.90 million, down 4.1% year-over-year [1] - Revenues from Corporate Finance & Restructuring: $341.51 million, slightly above the estimated $340.30 million, down 1.7% year-over-year [1] - Revenues from Economic Consulting: $222.03 million, exceeding the estimated $220.22 million, up 14.5% year-over-year [1] - Revenues from Forensic and Litigation Consulting: $168.78 million, below the estimated $179.44 million, up 1.6% year-over-year [1] Stock Performance - FTI Consulting shares have returned +0.9% over the past month, compared to the S&P 500 composite's +1.5% change [2] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [2]

In its upcoming report, FTI Consulting (FCN) is predicted by Wall Street analysts to post quarterly earnings of $2.06 per share, reflecting a decline of 12% compared to the same period last year. Revenues are forecasted to be $940.14 million, representing a year-over-year increase of 5.3%.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over ...

Core Insights - FTI Consulting, Inc. reported strong second-quarter 2024 results, with earnings per share of $2.34 exceeding the Zacks Consensus Estimate by 19.4% and increasing 33.7% year over year, while total revenues reached $949.2 million, surpassing the consensus mark by 2.1% and growing 9.8% from the previous year [1] Revenue Growth by Segment - Technology revenues rose 18.9% year over year to $115.9 million, driven by increased demand for M&A-related "second request" services, although partially offset by lower demand for investigation services [2] - Economic Consulting revenues increased 14.4% from the year-ago quarter to $230.9 million, supported by higher demand and realized bill rates for M&A-related antitrust and financial economics services, despite lower demand for non-M&A-related antitrust services [3] - Corporate Finance & Restructuring revenues grew 9.5% year over year to $348 million, attributed to higher demand and realized bill rates for business transformation and strategy services, although lower restructuring revenues had a dampening effect [4] - Strategic Communications revenues climbed 2.8% year over year to $84.9 million, primarily due to a $1.7 million increase in pass-through revenues and public affairs revenues, offset by lower corporate reputation revenues [5] - Forensic and Litigation Consulting revenues rose 2.9% year over year to $169.5 million, supported by higher demand for dispute services and increased realized bill rates for construction solutions, despite lower demand for investigation services [6] Margin Expansion - Adjusted EBITDA for the quarter was $115.9 million, reflecting a 15.7% year-over-year increase, with the adjusted EBITDA margin climbing 60 basis points to 12.2% [7] Balance Sheet and Cash Flow - At the end of the quarter, FTI Consulting had cash and cash equivalents of $226.4 million, down from $244 million in the prior quarter, with long-term debt standing at $60 million [8] - The company generated $135.2 million in cash from operating activities during the quarter, with capital expenditures amounting to $10.1 million [8] 2024 Guidance - FTI Consulting has raised its 2024 revenue guidance to a range of $3.7 billion to $3.79 billion, compared to the previous expectation of $3.65 billion to $3.79 billion, while the midpoint of the revised range is slightly lower than the current Zacks Consensus Estimate [9] - The company estimates EPS to range between $8.10 and $8.60, an increase from the prior estimate of $7.75 to $8.50, with the midpoint of the revised range also lower than the current Zacks Consensus Estimate [9]

Company Overview - FTI Consulting (FCN) is a global business advisory firm founded in 1982, based in Baltimore, Maryland, providing specialized consulting services across 57 countries with over 7,990 employees [19] - The company serves a significant portion of Fortune 500 companies, FTSE 100 companies, and major financial institutions and law firms, focusing on areas such as Corporate Finance, Forensic Consulting, Strategic Communications, Technology, and Economic Consulting [19] Investment Ratings - FCN holds a Zacks Rank of 3 (Hold) with a VGM Score of A, indicating a solid position in the market [11] - The Zacks Consensus Estimate for FCN's fiscal 2024 earnings has increased by $0.26 to $8.48 per share, with two analysts revising their earnings estimates upwards in the last 60 days [12] Performance Metrics - FCN has demonstrated an average earnings surprise of 29.6%, showcasing its ability to exceed earnings expectations [12] - The stock has a Momentum Style Score of A, with shares increasing by 5.8% over the past four weeks, indicating strong upward momentum [20] Investment Strategy - The Zacks Rank and Style Scores are designed to help investors identify stocks with the best chances of outperforming the market, with a focus on stocks rated 1 or 2 and Style Scores of A or B for optimal investment potential [8][18]

Financial Performance - Revenue for Q2 2024 was $949.2 million, up 9.8% year-over-year from $864.6 million[38]. - Adjusted EBITDA increased by 15.7% year-over-year, reflecting strong performance across all segments, particularly in corporate finance and restructuring, economic consulting, and technology[17]. - Net income rose to $83.9 million, compared to $62.4 million in the prior year quarter, driven by higher revenues and a lower effective tax rate[38]. - Adjusted segment EBITDA for the quarter was $66.5 million, representing 19.1% of segment revenues, compared to 14.3% in the prior year quarter[40]. - Adjusted segment EBITDA for Q2 2024 was $115.9 million, representing 12.2% of revenues, an increase from $100.2 million or 11.6% in the prior year quarter[63]. - Free cash flow for the quarter was $125.2 million, with total debt net of cash at negative $166.4 million as of June 30, 2024[73]. - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in Q3 2023[132]. - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting $1.32 billion[132]. Tax and Expenses - Effective tax rate for Q2 2024 was 18.2%, down from 26.7% in the prior year quarter, with an expected full-year rate of 20% to 22%[37]. - SG&A expenses were $206.2 million, accounting for 21.7% of revenues, compared to 21.6% in the prior year quarter[18]. - The effective tax rate for Q2 2024 was 18.2%, down from 26.7% in the prior year quarter, primarily due to favorable tax adjustments related to share-based compensation[63]. - Cash levels increased by $23 million quarter-on-quarter, with less interest expense compared to the same period last year[110]. - Cost-cutting measures implemented resulted in a 5% reduction in operational expenses, saving $10 million[132]. Revenue Growth by Segment - Business transformation and strategy revenues grew by 24% year-over-year, while transaction revenues increased by 13%[41]. - Economic consulting segment revenues reached a record $230.9 million, increasing by 14.4% year-over-year, driven by higher demand for M&A-related antitrust services[67]. - Technology segment revenues increased by 18.9% year-over-year to $115.9 million, primarily due to higher demand for M&A-related second request services[69]. - Corporate finance and restructuring revenues decreased by $18 million (4.9%) sequentially, impacted by a 13% decline in restructuring revenues[41]. Headcount and Talent Acquisition - Billable headcount increased by 103 professionals (1.7%) year-over-year, while non-billable headcount rose by 81 professionals (5%)[19]. - The company announced 19 senior managing director hires, with an additional 15 expected to join soon[12]. - The company plans to welcome over 300 campus hires in the second half of the year, indicating a focus on talent acquisition[51]. - The hiring strategy involves lateral hires, with a productivity curve indicating losses in the first year, breakeven in the second, and profitability in the third year[98]. - The company aims for mid to high single-digit growth in headcount over the long term, which is expected to positively impact revenue growth[127]. - The management emphasizes the importance of building a strong talent pool to support future growth[130]. Strategic Initiatives - Revenue guidance for 2024 has been raised to a range of $3.70 billion to $3.79 billion, up from the previous range of $3.65 billion to $3.79 billion[49]. - Earnings per share (EPS) guidance has also been revised upwards to a range of $8.10 to $8.60, compared to the previous range of $7.75 to $8.50[49]. - The company plans to pay down its small revolver and maintain sufficient capital for organic growth investments[90]. - The company has tough filters for acquisitions and will act opportunistically when the right opportunities arise[90]. - The company plans to enter two new international markets by Q2 2024, aiming for a 15% revenue contribution from these markets[132]. - The company announced a strategic acquisition of a tech startup for $100 million to bolster its product offerings[132]. Customer and Market Insights - User data showed a growth of 25% in active users, totaling 5 million by the end of the quarter[132]. - New product launches contributed to a 20% increase in sales, with the latest product generating $200 million in its first month[132]. - Market expansion efforts have led to a 30% increase in market share in the Asia-Pacific region[132]. - Customer satisfaction ratings improved by 10% following the implementation of new service protocols[132]. Economic Outlook - The company expects restructuring levels to remain consistent with Q2 levels for the remainder of the year[124]. - There is a consensus among rating agencies that speculative debt default rates are not expected to rise[113]. - There is a focus on using cash wisely to create long-term value, avoiding unnecessary expenditures[91]. - Economic consulting segment showed strong revenue growth, with EBITDA margins remaining high despite competitive pressures[100].