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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Firing on All Cylinders: FTI Consulting (NYSE:FCN) Q2 Earnings Lead the Way

FCN Cover Image

Let’s dig into the relative performance of FTI Consulting (NYSE: FCN) and its peers as we unravel the now-completed Q2 business process outsourcing & consulting earnings season.

The sector stands to benefit from ongoing digital transformation, increasing corporate demand for cost efficiencies, and the growing complexity of regulatory and cybersecurity landscapes. For those that invest wisely, AI and automation capabilities could emerge as competitive advantages, enhancing process efficiencies for the companies themselves as well as their clients. On the flip side, AI could be a headwind as well as the technology could lower the barrier to entry in the space and give rise to more self-service solutions. Additional challenges in the years ahead could include wage inflation for highly skilled consultants and potential regulatory scrutiny on outsourcing practices—especially in industries like finance and healthcare where who has access to certain data matters greatly.

The 7 business process outsourcing & consulting stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Best Q2: FTI Consulting (NYSE: FCN)

With a team of experts deployed across 30+ countries to tackle complex business challenges, FTI Consulting (NYSE: FCN) is a global business advisory firm that helps organizations manage change, mitigate risk, and resolve disputes across financial, legal, operational, and regulatory matters.

FTI Consulting reported revenues of $943.7 million, flat year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

FTI Consulting Total Revenue

FTI Consulting delivered the slowest revenue growth of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $168.61.

Is now the time to buy FTI Consulting? Access our full analysis of the earnings results here, it’s free.

CRA (NASDAQ: CRAI)

Often retained for high-stakes matters with multibillion-dollar implications, CRA International (NASDAQ: CRAI) provides economic, financial, and management consulting services to corporations, law firms, and government agencies for litigation, regulatory proceedings, and business strategy.

CRA reported revenues of $186.9 million, up 9% year on year, outperforming analysts’ expectations by 3.6%. The business had a strong quarter with full-year revenue guidance topping analysts’ expectations and a beat of analysts’ EPS estimates.

CRA Total Revenue

CRA delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.6% since reporting. It currently trades at $193.52.

Is now the time to buy CRA? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Concentrix (NASDAQ: CNXC)

With a team of approximately 450,000 employees across 75 countries, Concentrix (NASDAQ: CNXC) designs and delivers customer experience solutions that help global brands manage their customer interactions across digital channels and contact centers.

Concentrix reported revenues of $2.42 billion, up 1.5% year on year, exceeding analysts’ expectations by 1.2%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 7.5% since the results and currently trades at $51.01.

Read our full analysis of Concentrix’s results here.

Exponent (NASDAQ: EXPO)

With a team of over 800 consultants holding advanced degrees in 90+ technical disciplines, Exponent (NASDAQ: EXPO) is a science and engineering consulting firm that investigates complex problems and provides expert analysis for clients across various industries.

Exponent reported revenues of $132.9 million, flat year on year. This print topped analysts’ expectations by 1.5%. Aside from that, it was a mixed quarter as it also logged EPS in line with analysts’ estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The stock is up 4.3% since reporting and currently trades at $71.93.

Read our full, actionable report on Exponent here, it’s free.

Genpact (NYSE: G)

Originally spun off from General Electric in 2005 to provide business process services, Genpact (NYSE: G) is a global professional services firm that helps businesses transform their operations through digital technology, AI, and data analytics solutions.

Genpact reported revenues of $1.25 billion, up 6.6% year on year. This number beat analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ constant currency revenue estimates and a decent beat of analysts’ EPS guidance for next quarter estimates.

Genpact had the weakest full-year guidance update among its peers. The stock is up 7.7% since reporting and currently trades at $44.95.

Read our full, actionable report on Genpact here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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