FTI Announces One Brand Strategy - Analyst Blog

West Palm Beach, Florida-based FTI Consulting Inc. (FCN), a global business advisory firm, has expanded significantly through acquisitions. Ithas acquired more than 25 companies over the last five years. Recently, the company announced plans to bring all its acquired firms under one brand i.e. FTI Consulting hopefully by November 2011.

FTI Consulting believes that the one brand strategy will enhance brand recognition, particularly in the new market. Moreover, professionals of all the firms will be able to work as a team, likely providing superior services to clients all over the world.

For the fourth quarter of 2010, the company anticipates incurring a non-recurring charge of $25 million, or 36 cents a share due to its brand consolidating strategy. Thus, the prior adjusted earnings guidance of $2.50 and $2.80 for 2010 provided by the company will not be affected since the charge will be treated as a one-time item.

The Zacks Consensus Estimate for fourth quarter is 54 cents and for fiscal year 2010 is $2.27. FTI Consultingalso said it may incur marketing expenses, which are not expected to be material to its overall results. We believe that FTI will definitely benefit from this strategy in the long run.

As per the previous guidance, company forecast revenues in the range of $1.40 billion to $1.45 billion. The company also projected a 3% increase in holiday sales in its recently released 2010 Retail Report. The upside in holiday sales is expected to come on the back of year-over-year improvements in income growth and household wealth. The Zacks Consensus Estimate for is $347 million for the fourth quarter and $1392.0 million for fiscal 2010.

FTI Consulting currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.

FTI Consulting's primary competitors are Navigant Consulting Inc. (NCI) and Accenture plc (ACN).

 
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