FTI Consulting Cuts FY14 Outlook; Sees FY15 Adj. EPS In Line - Quick Facts

(RTTNews) - FTI Consulting, Inc. (FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, said it cut its adjusted earnings per share and revenues outlook for the year ended December 31, 2014.

For 2014, revenues are expected to be in the range of $1.750 billion to $1.760 billion, which is below the previously announced guidance range of between $1.755 billion and $1.770 billion. Adjusted earnings per share are expected to be between $1.60 and $1.64, which is below the previous guidance range of between $1.85 and $2.00. Analysts polled by Thomson Reuters expect the company to report earnings of $1.95 per share and revenues of $1.77 billion for fiscal 2014. Analysts' estimates typically exclude special items.

According to the company, the anticipated revenue shortfall is the result of lower than expected revenues in the Company's Economic Consulting segment and, to a lesser extent, in its Corporate Finance/Restructuring and Technology segments, with the majority of the Company's shortfall occurring in the month of December. However, the substantial majority of the shortfall in Adjusted earnings per share is the result of a number of unforecasted expenses the Company recorded during its year-end closing process, including a non-cash charge to establish a valuation reserve on deferred tax assets related to our Australian business which decreased Adjusted earnings per share by $0.11.

The company currently expects special charges for 2014 will reduce fully-diluted earnings per share by $0.24 and the remeasurement of acquisition-related contingent consideration for 2014 will increase earnings per share by $0.05.

The company currently expects fiscal 2014 earnings per share to be in the range of $1.41 to $1.45.

David Johnson, Chief Financial Officer of FTI Consulting, said, "We remain committed to our medium-term financial goal of $2.50 or more of Adjusted EPS in 2016 and to building a business model driven by organic growth and continuing investment in our business."

The company expects that its adjusted earnings per share for 2015 will be between $1.95 and $2.20. Analysts expect annual earnings of $2.12 per share.

The company noted that it will report its fourth quarter 2014 and full year 2014 results on February 19, 2015.