Business advisory company FTI Consulting, Inc. (FCN) Wednesday reported a significant rise in profit for the third quarter, benefiting from an increase in revenues mainly from Corporate Finance/Restructuring segment due to higher restructuring activities.
Net income for the third quarter increased to $37.56 million or $0.70 per share from $26.35 million or $0.53 per share in the previous year. Net income and earning per share included the one-time effects of a non-taxable gain of $2.3 million in connection with the purchase of the outstanding 50% interest in the Strategic Communications segment's German joint venture and certain tax benefits that reduced the company's effective tax rate for the quarter to 33.2%.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.66 per share. Analysts' estimates typically exclude one-time charges and gains.
Revenues for the quarter increased 7.1% to $348.64 million from $325.50 million a year ago. Excluding the effect of changes in foreign currency exchange rates, revenues increased 9.0%, compared to the 2008 third quarter.
Analysts expected a revenue of $366.90 million for the third quarter.
By segment, revenue from Corporate Finance/Restructuring increased 39.2% to $127.81 million from $91.82 million last year. The revenue rise is mainly due to the robust demand that drove higher chargeable hours and billing rates, and increased revenue allowed for operating leverage.
Forensic and Litigation Consulting revenues were $65.04 million, compared to $65.79 million a year ago. The company noted that the levels of more routine commercial litigation and investigations remained soft in the segment as the challenging global economic environment continued to restrain discretionary spending.
Revenue from Strategic Communications segment declined to $47.49 million from $56.10 million in the previous year due to unfavorable exchange rates that reduced revenues for the quarter by $3.0 million.
Technology revenue declined to $48.71 million from $55.38 million last year as increased contributions from large investigation cases were offset by declines in revenues from product liability engagements and continued pricing pressure in the segment's On Demand business.
Revenue from Economic Consulting rose 5.6% to $59.59 million from $56.41 million a year ago. The revenue increase resulted from continued growth in the segment's new offices in New York, Los Angeles and London, and improving activity in strategic merger and acquisition and financial dispute matters during the quarter.
Operating expenses for the quarter increased to $284.35 million from $272.49 million in the previous year. Total other expense for the quarter declined to $8.10 million from $9.27 million last year.
For the first nine months, the company reported net income of $106.45 million or $1.99 per share, up from $90.76 million or $1.69 per share in the same period of the previous year. Total revenues for the period increased to $1.06 billion from $970.3 million last year.
Further, the company noted that its board has authorized a new two year stock repurchase program of up to $500 million. The company intends to execute a $250 million accelerated stock buyback with Goldman, Sachs & Co. as soon as practicable.
FCN closed Wednesday's regular trading at $42.57, up 0.28 or 0.66%, on a volume of 1.54 million shares on the NYSE. In after hours, the stock further gained 0.56 or 1.32%, trading at $43.1305.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.