UPDATE 2-FTI Consulting shares fall on Q4 and weak 2010 outlook

* Q4 EPS $0.71 vs est $0.73

* Higher expenses hurt profit

* Sees 2010 EPS below Street view

* Shares down as much as 11 pct
(Adds CEO comments from conference call, updates share

Feb 26 (BestGrowthStock) – FTI Consulting Inc (FCN.N: ) reported a
quarterly profit below Wall Street estimates on higher expenses
and forecast weak 2010 earnings, sending the business advisory
firm’s shares down as much as 11 percent.

The economy is struggling to show signs of real recovery
and economic growth is expected to be anaemic in both the
United States and Europe, Chief Executive Jack Dunn said on a
conference call with analysts.

However, the company is experiencing signs of improving
trends in discretionary spending and capital markets activity,
he said.

Consulting firms, which help companies handle
investigations and restructuring, are expected to see a rise in
business volume as the credit crisis abates and discretionary
spending — on investigations, litigation and bankruptcies
proceedings — gains steam.

For 2010, the consulting company expects adjusted earnings
of $3.00 to $3.25 a share, on revenue of $1.47 billion to $1.57
billion. Earnings including special charges is expected to be
$2.69 a share to $2.94 a share.

Analysts were expecting earnings of $3.34 a share on
revenue of $1.57 billion.


Net income for the fourth quarter was $36.6 million, or 71
cents a share, compared with $30.1 million, or 56 cents a
share, in the year-ago period.

Revenue for the quarter rose 6 percent to $342.9 million.
Revenue from the company’s corporate finance/restructuring
business — its largest segment — increased about 17 percent
to $124.9 million.

Analysts on average expected the company to earn 73 cents a
share, on revenue of $365.9 million, according to Thomson
Reuters I/B/E/S.

Operating expenses rose to $275.7 million from $265.1

The company, which advised in the $12.5 million merger
between Coca-Cola Co (KO.N: ) and Coca-Cola Enterprises (CCE.N: ),
expects to continue to hire in 2010.

Shares of the West Palm Beach, Florida-based company were
down $4.07 at $37.97 in morning trade on the New York Stock
Exchange. They earlier touched a low of $37.61.

Stock Market Analysis

(Reporting by Sweta Singh in Bangalore; Editing by Anne
Pallivathuckal and Maju Samuel)

UPDATE 2-FTI Consulting shares fall on Q4 and weak 2010 outlook