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increase in revenue: Full-year 2023 revenue increased 15.2% to $3,489 million.
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Increase in net income: Net income for the year improved to $274.9 million from $235.5 million a year ago.
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Earnings per share: 2023 EPS was $7.71, up from $6.58 a year ago.
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Adjusted EBITDA: Full-year 2023 adjusted EBITDA of $424.8 million, or 12.2% of revenue.
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cash position:Cash and cash equivalents and short-term investments totaled $328.7 million at year-end.
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capital allocation:The company repurchased 112,139 shares in 2023 at an average price of $158.70 per share.
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Guidance for 2024: FTI Consulting projects 2024 revenue of $3.65 billion to $3.79 billion and EPS of $7.75 to $8.50.
On February 22, 2024, FTI Consulting Inc (NYSE:FCN) released its 8-K filing announcing record financial results for the fourth quarter and full year ended December 31, 2023. The company is a global business advisory firm and has been in operation for five years. We provide a wide range of services to clients in a variety of industries, primarily in the United States.
Financial highlights and segment performance
FTI Consulting's full-year 2023 revenue increased significantly by 15.2% to $3,489 million due to increased demand across all business segments. The company's net income also increased significantly, from $235.5 million the previous year to $274.9 million. This increase in net income was primarily due to higher revenue, partially offset by higher compensation, a 17.2% increase in SG&A expenses, and higher income taxes.
The company's diluted earnings per share (EPS) for the year was $7.71, compared with $6.58 in the year-ago period. His adjusted EPS excluding certain non-recurring items is consistent with his reported EPS of $7.71, indicating strong operating results with no material exceptional items.
FTI Consulting's cash position remained strong, with net cash provided by operating activities of $224.5 million for the year, up from $188.8 million in the prior year. The Company's cash and cash equivalents and short-term investments totaled $328.7 million at the end of 2023.
Challenges and prospects
Despite FTI Consulting's strong financial performance, it faced challenges including increased compensation costs related to increased headcount, increased operating expenses, and increased use of working capital required for growth. These factors and increased selling, general and administrative expenses could pose challenges to the company's future profitability if not effectively managed.
Looking ahead, FTI Consulting provides guidance for 2024, expecting revenue in the range of $3.65 billion to $3.79 billion and EPS in the range of $7.75 to $8.50. Confidence in the company's future performance is supported by its sustained growth trajectory and ability to effectively meet customer needs.
Investor and Analyst Perspective
Stephen H. Gamby, president and chief executive officer of FTI Consulting, said the company's ability to deliver value to clients and attract top talent has been a key driver of its success, and is confident in the company's future. expressed. he said:
In 2023, the Company continued its multi-year sustainable growth trajectory, once again achieving record revenues and profits. These results reflect our continued ability to win in two of our most important markets: the market for making a difference for our clients and the market for great talent. This progress makes us even more confident about our future.
FTI Consulting's strong 2023 performance and positive outlook for 2024 suggest that the company is well-positioned to navigate the complexities of the global business environment. Investors and analysts will be watching to see if the company can maintain its growth momentum and manage operating expenses next year.
For a detailed analysis of FTI Consulting's financial results, including segment results and reconciliations of non-GAAP financial measures, interested parties can access the complete earnings release and financial statements on the company's Investor Relations website.
FTI Consulting will host a conference call to discuss its fourth quarter and full year 2023 financial results, providing an opportunity for analysts and investors to gain further insight into the company's performance and strategic direction.
For more information, see FTI Consulting Inc's full 8-K earnings release here.
This article first appeared on GuruFocus.
