FTI Consulting (NYSE:FCN) Shares Gap Up on Strong Earnings

Key Points

• FTI Consulting shares surged, opening at $170.57 versus a prior close of $158.59 after the company reported stronger-than-expected earnings.
• Quarterly earnings were $3.84 per share, beating the $2.74 analyst consensus by $1.10, while revenue reached $1.01 billion and grew 5.9% year over year.
• Despite substantial institutional ownership of 99.36%, analysts remain cautious: the stock has an average “Hold” rating and a $163.50 average price target.

FTI Consulting, Inc. (NYSE:FCN - Get Free Report)'s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $158.59, but opened at $170.57. FTI Consulting shares last traded at $170.1430, with a volume of 50,996 shares trading hands.

The business services provider reported $3.84 earnings per share for the quarter, beating analysts' consensus estimates of $2.74 by $1.10. FTI Consulting had a net margin of 6.44% and a return on equity of 15.91%. The business had revenue of $1.01 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same quarter last year, the business posted $2.60 earnings per share. FTI Consulting's revenue for the quarter was up 5.9% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on FCN. Truist Financial decreased their price objective on FTI Consulting from $180.00 to $158.00 and set a "hold" rating on the stock in a report on Friday, October 23rd. Weiss Ratings raised FTI Consulting from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday. Two investment analysts have rated the stock with a Hold rating. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $163.50.

Hedge Funds Weigh In On FTI Consulting

Institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. purchased a new stake in FTI Consulting during the 2nd quarter worth about $408,202,000. Dimensional Fund Advisors LP lifted its position in FTI Consulting by 6.9% during the first quarter. Dimensional Fund Advisors LP now owns 921,218 shares of the business services provider's stock valued at $162,836,000 after purchasing an additional 59,524 shares during the last quarter. Neumeier Poma Investment Counsel LLC bought a new position in shares of FTI Consulting in the 2nd quarter worth $44,699,275. Quantinno Capital Management LP lifted its holdings in shares of FTI Consulting by 141.6% during the 1st quarter. Quantinno Capital Management LP now owns 256,490 shares of the business services provider's stock worth $45,340,000 after acquiring an additional 150,348 shares during the last quarter. Finally, Bank of New York Mellon Corp grew its position in FTI Consulting by 2.2% in the first quarter. Bank of New York Mellon Corp now owns 209,668 shares of the business services provider's stock worth $37,063,000 after acquiring an additional 4,603 shares in the last quarter. 99.36% of the stock is owned by institutional investors.

FTI Consulting Price Performance

The company has a debt-to-equity ratio of 0.76, a quick ratio of 2.03 and a current ratio of 2.03. The stock has a market capitalization of $4.72 billion, a P/E ratio of 20.66 and a beta of -0.06. The firm has a 50-day moving average price of $146.04 and a 200 day moving average price of $159.88.

FTI Consulting Company Profile

FTI Consulting, Inc is a global business advisory firm that helps organizations address complex financial, legal, operational and reputational challenges. The company provides independent expertise to corporations, law firms, financial institutions, government agencies and other organizations involved in major disputes, transactions, investigations, restructurings and regulatory matters.

FTI Consulting operates through several practice areas, including Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology and Strategic Communications.

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