What Happened?
Shares of business advisory firm FTI Consulting (NYSE: FCN) jumped 5.4% in the afternoon session after the company lowered its full-year earnings and revenue forecast, signaling a more challenging outlook ahead. The lowered forecast overshadowed second-quarter results that beat Wall Street estimates. FTI reported Q2 revenue of $943.7 million and adjusted EBITDA of $111.6 million, surpassing analysts' expectations. However, the company cut its full-year earnings per share (EPS) projection to a range of $7.24 to $7.84, down from a previous forecast of $7.44 to $8.24. The revenue outlook for the year was also trimmed. The mixed performance reflected varied results across its business units, as revenue growth in its Corporate Finance, Forensic and Litigation, and Strategic Communications segments was offset by declines in its Economic Consulting and Technology segments. Overall, the negative forward-looking statements appeared to weigh more heavily on investors than the quarterly beat.
After the initial pop the shares cooled down to $175.04, up 4.5% from previous close.
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What Is The Market Telling Us
FTI Consulting’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
FTI Consulting is down 7.8% since the beginning of the year, and at $175.04 per share, it is trading 24.2% below its 52-week high of $231 from October 2024. Investors who bought $1,000 worth of FTI Consulting’s shares 5 years ago would now be looking at an investment worth $1,552.
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