Core Insights - FTI Consulting, Inc. (FCN) reported disappointing fourth-quarter 2024 results, with earnings and revenues missing the Zacks Consensus Estimate [1][2] Financial Performance - Adjusted earnings per share were $1.56, missing the consensus estimate by 6.6% and down 31.6% year-over-year [2] - Revenues totaled $895 million, lagging the consensus estimate by 1.6% and decreasing 3.2% year-over-year [2] Segmental Performance - Technology revenues decreased 10.2% year-over-year to $90.6 million, primarily due to lower demand for M&A-related "second request" services [3] - Economic Consulting revenues remained flat at $206.1 million year-over-year, with higher M&A-related antitrust revenues offset by lower international arbitration and non-M&A-related antitrust revenues [3] - Corporate Finance & Restructuring revenues declined 8.2% year-over-year to $335.7 million, driven by lower demand for transformation & strategy and transactions services [4] - Strategic Communications revenues were flat at $86.6 million year-over-year, with higher demand for financial communications services offset by lower demand for corporate reputation services [4] - Forensic and Litigation Consulting revenues rose 6.3% year-over-year to $175.9 million, with acquisition-related revenues contributing $2.4 million [5] Margins and Cash Flow - Adjusted EBITDA was $73.7 million, down 42.1% year-over-year, with the adjusted EBITDA margin declining 560 basis points to 8.2% [6] - The company exited the quarter with cash and cash equivalents of $660.5 million, up from $386.3 million in the prior quarter, and generated $395.1 million from operating activities [7] 2025 Guidance - FCN revised its 2025 revenue guidance to a range of $3.66 billion to $3.81 billion, with the midpoint lower than the current Zacks Consensus Estimate of $3.87 billion [8] - Estimated EPS for full-year 2025 is projected between $7.44 and $8.24, with the midpoint also lower than the current Zacks Consensus Estimate of $8.63 [9]

Core Viewpoint - FMC Technologies (FTI) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with a consensus outlook suggesting a significant earnings surprise could impact its stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.36 per share, reflecting a year-over-year increase of +157.1%, with revenues projected at $2.3 billion, up 10.6% from the previous year [3]. - The consensus EPS estimate has been revised 0.52% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a negative Earnings ESP of -7.04% for FMC Technologies, suggesting analysts have become bearish on the company's earnings outlook [11][10]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, FMC Technologies exceeded the expected earnings of $0.39 per share by delivering $0.64, resulting in a surprise of +64.10% [12]. - Over the past four quarters, the company has consistently beaten consensus EPS estimates [13]. Industry Context - In the Zacks Oil and Gas - Field Services industry, Kinetik Holdings Inc. (KNTK) is expected to report earnings of $0.37 per share, indicating a year-over-year decline of -78.2%, with revenues projected at $495.33 million, up 42% from the previous year [17]. - Kinetik Holdings has a negative Earnings ESP of -13.51% and a Zacks Rank of 3, complicating predictions for an earnings beat [18].

Core Insights - FTI Consulting reported record revenues and earnings per share for the full year 2024, with revenues of $3.699 billion, a 6.0% increase from $3.489 billion in 2023, and net income of $280.1 million compared to $274.9 million in the prior year [2][4][11]. Financial Performance - Full year 2024 revenues increased by $209.4 million, driven by growth across all business segments [2]. - Net income rose to $280.1 million, influenced by higher revenues, lower income taxes, and a foreign currency remeasurement gain, despite increased compensation and SG&A expenses [2]. - Adjusted EBITDA for 2024 was $403.7 million, representing 10.9% of revenues, down from $424.8 million or 12.2% of revenues in the prior year [2]. Earnings Per Share - Full year 2024 earnings per diluted share (EPS) was $7.81, up from $7.71 in 2023, while adjusted EPS increased to $7.99 from $7.71 [3][11]. Cash Position and Capital Allocation - Net cash provided by operating activities for 2024 was $395.1 million, significantly higher than $224.5 million in 2023, primarily due to increased cash collections [5]. - Cash and cash equivalents at year-end 2024 were $660.5 million, up from $328.7 million at the end of 2023 [6]. - The company repurchased 51,717 shares at an average price of $197.53, totaling $10.2 million, with approximately $450.4 million remaining for future repurchases [7]. Fourth Quarter Results - Fourth quarter 2024 revenues were $894.9 million, a decrease of $29.8 million or 3.2% from $924.7 million in the prior year quarter, primarily due to lower demand in Corporate Finance & Restructuring and Technology segments [8][11]. - Net income for the fourth quarter was $49.7 million, down from $81.6 million in the prior year quarter, impacted by lower revenues and increased expenses [8]. - Fourth quarter adjusted EBITDA was $73.7 million, or 8.2% of revenues, compared to $127.4 million or 13.8% of revenues in the prior year quarter [8]. Segment Performance - Corporate Finance & Restructuring segment revenues decreased by $29.8 million or 8.2% to $335.7 million, primarily due to lower demand for transformation and strategy services [10]. - Forensic and Litigation Consulting segment revenues increased by $10.4 million or 6.3% to $175.9 million, driven by higher demand for data and analytics services [13]. - Economic Consulting segment revenues remained flat at $206.1 million, with higher M&A-related antitrust revenues offset by declines in other areas [14]. - Technology segment revenues decreased by $10.3 million or 10.2% to $90.6 million, primarily due to lower demand for M&A-related services [15]. - Strategic Communications segment revenues were stable at $86.6 million, with mixed demand across services [16]. Future Guidance - For 2025, the company estimates revenues between $3.660 billion and $3.810 billion, with EPS guidance ranging from $7.44 to $8.24 and adjusted EPS between $7.80 and $8.60 [18].

Core Insights - FTI Consulting has strengthened its Corporate Finance & Restructuring segment in Frankfurt by adding Christoph Söhngen and Sebastian Rudow as Senior Managing Directors, following recent promotions within the firm [1][2] Group 1: New Appointments - Christoph Söhngen brings over 16 years of business transformation experience, particularly in the financial services sector, focusing on customer experience, operational efficiency, and cost optimization [2][3] - Sebastian Rudow has extensive experience in finance and restructuring, having held leadership roles in mid-sized European businesses, focusing on operational and financial turnaround [4][5] Group 2: Company Growth and Strategy - The addition of Söhngen and Rudow reflects FTI Consulting's commitment to attracting top talent, which is essential for the firm's continued strong growth [2] - The firm aims to enhance its EMEA-wide transformation capabilities to support clients in navigating complex and dynamic projects, particularly in highly regulated markets like financial services [6] Group 3: 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]

Core Insights - FTI Consulting has appointed Wael Osman as a Senior Managing Director in its Corporate Finance & Restructuring segment in Saudi Arabia, enhancing the firm's tax services in the Middle East [1][3] - Mr. Osman will spearhead the launch of the tax practice in Saudi Arabia, catering to the expanding regional client base on tax-related matters [2][4] - The appointment reflects FTI Consulting's commitment to growth in the Kingdom during a significant period for its operations in Riyadh [3] Company Overview - FTI Consulting is a global business advisory firm focused on helping organizations manage change, mitigate risk, and resolve disputes across various domains [5] - The company reported revenues of $3.49 billion for the fiscal year 2023, with over 8,300 employees operating in 34 countries [5] Leadership and Expertise - Wael Osman brings over 20 years of experience in tax advisory services, having worked with clients in sectors such as oil and gas, defense, real estate, and healthcare [3] - His previous role as an international tax partner at a Big Four firm involved establishing the tax practice in Riyadh, showcasing his leadership and expertise in the Saudi tax landscape [4]

Group 1: Contract Award and Project Overview - TechnipFMC has awarded a contract to Tracerco for the installation of Profiler measurement and control solutions for Petrobras' Mero 3 High-Pressure Separator pilot project in Brazil [1][2] - The HISEP project is part of the Mero field development, located 180 kilometers off Rio de Janeiro, focusing on separating oil from CO2-rich gas and reinjecting the gas into the reservoir for sustainability [3][5] - Petrobras operates the oil-rich field with a 38.6% interest, while partners Shell Brasil and TotalEnergies hold 19.3% each, and CNPC and CNOOC hold 9.65% each [4] Group 2: Technology and Efficiency - Tracerco's Profiler technology has been reengineered for efficient operation in subsea environments, providing real-time and high-resolution measurements of water, oil, and gas phases [6] - The Profiler is the only subsea-qualified separator and process control measurement system capable of separation at the liquid level or oil/water interface level, with about 750 units installed globally [7] Group 3: Economic and Sustainable Impact - The deal enhances Tracerco's global presence and is expected to create up to 10 new jobs in the local economy while delivering sustainable benefits [8]

Core Insights - The 2025 Global CFO Report by FTI Consulting indicates that 72% of CFOs expect revenue growth of 10% or more in the next 12 months [1][2] Group 1: CFO Optimism and Expectations - 77% of CFOs from larger companies (revenues over $5 billion) are optimistic about revenue growth despite economic pressures [3] - Mid-market firms (revenues between $100 million and $1 billion) show a decline in optimism, with only 67.5% predicting double-digit growth for 2025, down from 76% in 2024 [4] Group 2: Strategic Role of CFOs - CFOs are increasingly involved in strategic planning beyond traditional financial stewardship, focusing on navigating technological advancements and evolving business models [5] - The role of CFOs is shifting towards driving growth through finance-led decision support and business strategy [6] Group 3: Key Challenges and Priorities - Cybersecurity is a top priority for CFOs, with 75% in North America identifying cyber attacks as a major challenge [8] - 85% of CFOs emphasize the need for improved forecasting capabilities, with 87% planning to use AI tools within the next 12 months [8] Group 4: Changes in CFO Tenure and Outsourcing - The perception of CFO tenure is changing, with a 5% increase in respondents believing CFOs will stay five years or longer [8] - Outsourcing of finance functions has increased by 11% from 2024 to 2025, indicating a reliance on external capabilities for operational efficiency [8]

Group 1 - The core viewpoint is that FTI Consulting, Inc. (FCN) is experiencing top-line growth driven by diversification and international operations, although rising expenses are negatively impacting profitability [1][2][3] - The Zacks Consensus Estimate for FCN's earnings in 2024 is $8.1 per share, reflecting a 5.1% increase from the previous year, while the estimate for 2025 is $8.6 per share, indicating a 6.5% year-over-year growth [1] - International operations contributed nearly 37% of FCN's revenues in 2023, showcasing the company's diverse offerings and global reach as key differentiators from competitors [2] Group 2 - Demand for FCN's services is expected to rise due to increasing regulatory scrutiny and corporate litigation, as companies seek to protect intellectual property and engage in restructuring activities [3] - FTI Consulting has a strong balance sheet with $386 million in cash and cash equivalents and no debt as of September 30, 2024, allowing for potential investments in growth initiatives [4] - The company's liquidity is robust, with a current ratio of 2.09, significantly above the industry average of 1.25, indicating efficient short-term debt coverage [5] Group 3 - FCN's operating expenses have surged, with a year-over-year increase of 10.6% in 2022 and 14.2% in 2023, which may deter investments and affect profitability [7] - The company has not declared dividends and does not plan to do so, which may dissuade dividend-seeking investors from purchasing its stock [8] - FCN currently holds a Zacks Rank of 3 (Hold), while competitors like CRA International, Inc. and Cintas Corporation have better rankings of 2 (Buy) [9][10]

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