WASHINGTON - FTI Consulting, Inc. (NYSE: NYSE:FCN) today announced its financial results for the fourth quarter ended December 31, 2023, surpassing analyst expectations with a significant rise in earnings per share (EPS) and revenue. The company reported a Q4 EPS of $2.28, which is a substantial $0.61 higher than the analyst estimate of $1.67. Revenue for the quarter was equally impressive at $924.7 million, well above the consensus estimate of $840.4 million.
The strong quarterly performance, highlighted by a 19% increase in revenue compared to the same quarter last year, has sent FTI Consulting's stock soaring by 15%. The company's adjusted EPS also showed a remarkable year-over-year (YoY) growth, up 50% from $1.52 in the prior year quarter.
Steven H. Gunby, President and CEO of FTI Consulting, attributed the company's sustained growth trajectory to its ability to win in key markets and attract great talent. "In 2023, we continued our sustained, multi-year growth trajectory and once again delivered record revenues and earnings," Gunby stated. "These results reflect our continued ability to win in the two markets that matter most: the market for making a difference for clients and the market for great talent."
FTI Consulting's full-year revenues reached $3.489 billion, marking a 15% increase from the previous year. The company's net income also rose, reaching $274.9 million compared to $235.5 million in the prior year. The increase in net income was primarily due to higher revenues, partially offset by higher compensation, a 17.2% increase in SG&A expenses, and higher income taxes compared to the prior year.
Looking ahead, FTI Consulting has introduced its guidance for 2024, estimating that revenues will range between $3.650 billion and $3.790 billion, with EPS projected to be between $7.75 and $8.50. The company does not currently expect adjusted EPS to differ from EPS.
The company's financial health remains solid, with net cash provided by operating activities amounting to $224.5 million for the year ended December 31, 2023, an increase from the previous year's $188.8 million. This improvement was primarily due to higher cash collections resulting from increased revenues, despite higher compensation expenses related to headcount growth and an increase in other operating expenses.
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