Oppenheimer Comments On FTI Consulting Following Earnings Report

FTI Consulting FCN delivered adj'd 4Q10 EPS of $0.56 vs. Oppenheimer's estimate/consensus of $0.57/$0.54. Reported EPS was $0.23, which included a $0.33/sh brand consolidation charge. Revenue of $356M topped Oppenheimer's estimate/consensus of $345M/$348M. Operationally, the quarter was basically in line with Oppenheimer's expectation, with slightly better than expected Tech Consulting EBITDA of fset by higher than estimated corporate expenses. Investors were focused on 2011 guidance—where FCN's revenue range encompassed expectations, but FCN's EPS outlook was notably below consensus. FCN closed last week ~9% lower than it started, as it is still in transition across its segment's cycles. Oppenheimer maintains its Perform rating while waiting for organic revenue reinvigoration, FCN's poised to support guidance/downside via acquisitions and active share repurchases. FCN closed Friday at $33.28