October 27, 2023: FTI Consulting shares soared on Thursday after the company reported better-than-expected third-quarter results. The company also increased its outlook for the full year.
FTI Consulting is a global firm that offers consulting, technology, and outsourcing services to clients in various sectors. The company helps clients with corporate finance, restructuring, forensic accounting, litigation support, and strategic communications.
In the third quarter, FTI Consulting's revenue rose 15% year-over-year to $541.2 million. Earnings per share rose 17% year-over-year to $1.13. Analysts had forecasted revenue of $538.7 million and earnings per share of $1.08.
FTI Consulting boosted its full-year revenue guidance to $2.165 billion to $2.195 billion, from $2.14 billion to $2.18 billion. The company also boosted its full-year earnings per share guidance to $4.40 to $4.50, from $4.30 to $4.40.
FTI Consulting CEO Steven H. Gunby said that the company's strong third-quarter results were driven by growth across all of its businesses. Gunby also said that the company is well-positioned for continued growth in the fourth quarter and in 2024.
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FTI Consulting shares closed up 6.7% at $102.50 on Thursday. The company's shares have gained more than 50% year-to-date. Analysts praised FTI Consulting's third-quarter results and increased their price targets on the stock.
• Morgan Stanley: "FTI Consulting's third-quarter results were impressive, with revenue and earnings per share both beating our expectations. The company also raised its full-year guidance. We believe that FTI Consulting is well-positioned for continued growth, and we are raising our price target to $120."
• Goldman Sachs: "FTI Consulting's third-quarter results were strong, with revenue and earnings per share both beating our expectations. The company also raised its full-year guidance. We believe that FTI Consulting is a well-managed company with a strong competitive position. We are raising our price target to $115."
• JPMorgan Chase: "FTI Consulting's third-quarter results were solid, with revenue and earnings per share both meeting our expectations. The company also raised its full-year guidance. We believe that FTI Consulting is a good investment for investors who are looking for a company with a strong track record of growth and profitability. We are maintaining our price target of $105."
Conclusion
FTI Consulting's third-quarter results were strong, and the company raised its full-year guidance. Analysts are positive on the stock and have increased their price targets. Investors who are looking for a company with a strong track record of growth and profitability may want to consider investing in FTI Consulting.