Results: FTI Consulting, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts

FTI Consulting, Inc. (NYSE:FCN) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of US$944m, some 3.4% above estimates, and statutory earnings per share (EPS) coming in at US$2.13, 27% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, FTI Consulting's three analysts currently expect revenues in 2025 to be US$3.71b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 4.9% to US$7.48 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$3.67b and earnings per share (EPS) of US$7.38 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for FTI Consulting

There were no changes to revenue or earnings estimates or the price target of US$185, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values FTI Consulting at US$192 per share, while the most bearish prices it at US$178. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting FTI Consulting is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that FTI Consulting's revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2025 being well below the historical 9.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that FTI Consulting is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on FTI Consulting. Long-term earnings power is much more important than next year's profits. We have forecasts for FTI Consulting going out to 2027, and you can see them free on our platform here.

You can also view our analysis of FTI Consulting's balance sheet, and whether we think FTI Consulting is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.