Recovery In FCN’s Strategic Communications Segment Stronger Than Expected

Analysts at William Blair & Co downgrade FTI Consulting Inc FCN to "market perform." FTI Consulting announced its preliminary second-quarter results and full year guidance below the estimates. William Blair & Co says, “We think most buy-side investors were already skeptical of FTI's estimates and had already assumed EPS in the $2.50-$3.00 range for 2010, so the updated revenue and EPS guidance is disappointing, but not overly shocking. We like the fact that estimates may now get set at more reasonable levels and believe there is appeal to the company's balanced business portfolio if concerns about a double-dip recession continue to mount. However, FTI's stock had rallied on hopes that the company had canceled at William Blair's Growth Stock Conference because it was getting bought or was about to sell their technology segment—both of which now appear less likely to be the reason for why they canceled our conference.” “The three main litigation consulting segments were relatively flattish in aggregate on a sequential basis, the company’s strategic communications segment recovered much stronger than we expected, and corporate restructuring declined slightly faster than expected,” William Blair adds. More Analyst Ratings here