The 10-second takeaway
For the quarter ended March 31 (Q1), FTI Consulting met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share shrank.
Margins contracted across the board.
FTI Consulting notched revenue of $395.2 million. The eight analysts polled by S&P Capital IQ anticipated sales of $396.4 million on the same basis. GAAP reported sales were 9.2% higher than the prior-year quarter's $361.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.43. The nine earnings estimates compiled by S&P Capital IQ forecast $0.61 per share. GAAP EPS of $0.43 for Q1 were 10% lower than the prior-year quarter's $0.48 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.9%, 150 basis points worse than the prior-year quarter. Operating margin was 10.5%, 330 basis points worse than the prior-year quarter. Net margin was 4.7%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $414.3 million. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $1.65 billion. The average EPS estimate is $2.76.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 290 members out of 303 rating the stock outperform, and 13 members rating it underperform. Among 75 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give FTI Consulting a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FTI Consulting is outperform, with an average price target of $45.56.
Over the decades, small-cap stocks, like FTI Consulting have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add FTI Consulting to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.