Management services provider FTI Consulting, Inc. FCN reported tepid fourth-quarter 2016 results with adjusted earnings of $9.9 million or 24 cents per share compared with $10.2 million or 24 cents per share in the year-earlier quarter on relatively flatter revenues. The adjusted earnings missed the Zacks Consensus Estimate by 5 cents. Shares fell 1.13% during the entire trading session to close at $40.24 yesterday, as investors probably expected a healthy earnings beat.
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GAAP net income for the reported quarter was $7.1 million or 17 cents per share compared with $10.3 million or 25 cents per share in the year-ago quarter. The year-over-year decrease in GAAP earnings was primarily due to higher operating expenses in the reported quarter.
For full-year 2016, GAAP earnings improved to $85.5 million or $2.05 per share from $66.1 million or $1.58 per share in 2015, primarily driven by higher revenues. Adjusted earnings for 2016 were $93.2 million or $2.24 per share compared with $76.8 million or $1.84 per share in 2015.
Revenues for the quarter were $441.9 million compared with $442.2 million in the year-earlier quarter. Revenues beat the Zacks Consensus Estimate of $433 million. Excluding the estimated negative impact of foreign currency translation, revenues improved 2.6% year over year. For 2016, revenues increased to $1,810.4 million from $1,779.1 million in 2015.
Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter were $30.3 million, down from $35.2 million in the prior-year quarter, owing to higher compensation-related expenses in the Corporate Finance & Restructuring segment and lower demand in the Forensic and Litigation Consulting segment.
Segmental Details
Corporate Finance & Restructuring revenues were $113.4 million, up 1.6% year over year due to higher realized pricing for restructuring services and higher success fees. Adjusted EBITDA for the segment was $16.3 million, down from $18.9 million in the year-ago quarter, driven primarily by higher compensation costs.
Economic Consulting revenues increased to $129.3 million from $118.6 million in the prior-year quarter, largely driven by higher demand of merger and acquisition related antitrust services. Adjusted EBITDA came in at $19.0 million versus $18.8 million in the prior-year quarter.
Forensic and Litigation Consulting revenues fell to $105.5 million in the quarter from $116.7 million in the year-earlier quarter, driven by lower demand for advisory and health solutions. Adjusted EBITDA for the segment decreased to $6.3 million from $8.8 million on lower revenues.
Technology revenues declined to $43.5 million from $46.6 million in the prior-year quarter. The decline in revenues was attributable to lower M&A-related activities and lower demand for litigation services. Adjusted EBITDA came in at $5.6 million compared with $6.0 million in the prior-year quarter driven by lower revenues.
Strategic Communications revenues increased to $50.3 million from $48.8 million in the prior-year quarter, owing to higher project-based revenues in the Europe, Middle East and Africa (EMEA) region. Adjusted EBITDA for the segment was $8.4 million compared with $7.6 million in the prior-year quarter, largely due to higher revenues.