Loading...
•
Sep 30, 2024
FTI Consulting Q3 2024 Earnings Report
FTI Consulting's Q3 2024 earnings were weaker than expected, with revenue growth of only 3.7% and a decrease in revenue compared to the prior quarter due to market challenges and internal delays.
Key Takeaways
FTI Consulting reported weaker than expected Q3 2024 earnings, with revenue growth of 3.7% year-over-year. The company faced market challenges in Asia and internal delays in North American FLC and strategy businesses. Revenue and EPS guidance for the full year were updated.
Year-on-year revenue growth was 3.7%, lower than recent quarters and expectations.
Revenue pressure was attributed to market causes, such as challenges in Asia, and internal factors like delays in North American FLC and slowness in the strategy business.
The shortfall was primarily a revenue story, not driven by cost pressure from investments.
Investments in talent continue, with 25 SMD hires announced in the last six months and the largest class ever of 320 professionals from campuses.
Revenue by Segment
Forward Guidance
FTI Consulting updated its revenue and EPS guidance for the full year, estimating revenues between $3.7 billion and $3.75 billion and EPS between $7.90 and $8.35.
Positive Outlook
- Expertise of professionals allows company to help clients navigate complex and increasing dislocation.
- Set of businesses is uniquely diverse which can allow company to grow regardless of business cycles.
- Growth mindset focused on both retaining and attracting top talent.
- Balance sheet remains exceptionally strong.
- Ability to boost shareholder value through share buybacks, organic growth and acquisitions.
Challenges Ahead
- Slow revenue momentum going into the fourth quarter may persist.
- Weakening results in business transformation and strategy practices.
- Economic Consulting has a large matter that is slowing down.
- The fourth quarter is typically a weaker quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...