Investors Focused Stock: Navigant Consulting, Inc.’s (NYSE: NCI)

On 10 Dec 18, Navigant Consulting, Inc.’s (NYSE: NCI) shares price traded between $23.25 and $ 23.73 during the last trading session upbeat/downbeat with -1.34% at $23.54. The shares recorded trading volume 568,754 shares as compared to its average volume of 371,679 shares. The company has 43.43 million shares outstanding and market value of 41.73 million. Over the one year trading period, the stock has a peak price of $23.25 and its down is recorded at $23.73.

Navigant (NCI) recently stated financial results for the quarter ended September 30, 2018 and reported a quarterly dividend.

Third quarter 2018 highlights:

  • Revenues and revenues before reimbursements (RBR) were $187.6 and $171.4M respectively, up 1% and 4% contrast to third quarter 2017
  • Net income of $74.0M, which includes results from discontinued operations, was up $62.1M contrast to the previous year period largely Because of a gain recognized on the divestiture of the Company’s DFLT and Transaction Advisory businesses (SaleCo divestiture); Net income from continuing operations of $6.8M, or $0.15 per share, was up $1.0M from the previous year period
  • Adjusted Earnings per Share (EPS) from continuing operations of $0.15 raised $0.01 contrast to third quarter 2017
  • Repurchased $36.6M of ordinary stock through expanded share repurchase plan and initiated first-ever quarterly dividend
  • Management reaffirms its 2018 financial outlook for continuing operations as before provided in conjunction with its second quarter 2018 earnings release

Dividend declaration:

  • The Company also reported recently that its Board of Directors reported a quarterly cash dividend of $0.05 per share of ordinary stock. This dividend will be payable on December 14, 2018 to shareholders of record on November 30, 2018.

“Our overall third quarter results were in line with expectations, with top-line growth benefiting most notably from continued robust performance in our Energy section, steady demand in our FSAC section and contribution from the smooth start-up of our HSS joint-venture with Baptist Health South Florida,” stated Julie Howard, chairman and CEO of Navigant. “We are happy to affirm our 2018 continuing operations guidance targets.”

THIRD QUARTER 2018 FINANCIAL RESULTS:

Navigant stated third quarter 2018 revenues and RBR of $187.6M and $171.4M respectively, up 1% and 4% contrast to the third quarter 2017. The quarter benefited from the start-up of the Health System Solutions (HSS) joint-venture and continued robust demand in the Energy section which helped to offset some softness in Healthcare consulting.

Adjusted EBITDA from continuing operations for third quarter 2018 was $17.5M, down 7% from the previous year period as higher RBR in each section and lower bad debt expense was over offset by higher costs related to the maintenance of resources in Healthcare consulting and headcount and technology investments in the Financial Services Advisory and Compliance section.

Third quarter 2018 net income of $74.0M, which includes results from discontinued operations, was up $62.1M contrast to third quarter 2017 largely Because of a $60.2M after-tax gain recognized in discontinued operations for the SaleCo divestiture. Net income from continuing operations of $6.8M was up $1.0M contrast to the third quarter 2017 driven by the lapping of a contingent consideration adjustment in the previous year period, lower net interest costs in the current year period, as well as the impact of the operating items discussed above. Third quarter 2018 Adjusted EPS from continuing operations of $0.15 was up $0.01 contrast to the third quarter 2017 aided by a lower share count in the current year period.

THIRD QUARTER 2018 SECTION RESULTS

Healthcare section RBR of $101.8M raised 1% for the third quarter 2018 contrast to the same previous year period driven by the start-up of the HSS joint venture with Baptist Health South Florida which over offset some softness in Healthcare consulting. Section operating profit of $28.7M declined $3.0M in third quarter 2018 contrast to the third quarter 2017 as start-up costs related to the HSS joint venture and costs related to the maintenance of resources in healthcare consulting in anticipation of improving demand influenced profitability in the current year period.

Energy section RBR for third quarter 2018 of $34.6M raised 17% contrast to third quarter 2017, driven by continued strong demand across the section. Section operating profit of $10.9M for the quarter was up 34% contrast to the third quarter 2017 driven by the strong top-line performance and continued cost control.

2018 GUIDANCE – CONTINUING OPERATIONS

Management reaffirms 2018 guidance for continuing operations, which was originally provided in August 2018:

  • Revenues estimated to be between $740M and $765M
  • RBR predictable to range between $660M and $685M
  • Adjusted EBITDA predictable to range between $52M and $59M
  • Adjusted EPS estimated to be between $0.40 and $0.50 per share

EPS growth for this year is -21.30% and EPS growth for next year is expected to reach at 110.44%. EPS growth in past five years was 1.80% while EPS growth in next five years is projected to arrive at 13.50%. Sales growth past 5 years was measured at 4.80%.

 

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