What's driving FCN's EPS volatility this year?

FTI Consulting Inc (FCN) is experiencing volatility in its EPS this year due to a combination of factors:

1. **Revenue Decline and Missed Estimates**: The company reported a revenue decline of 3.2% year-over-year for the quarter ended December 2024, with revenue missing the Zacks Consensus Estimate by $18.8 million. This decline in revenue likely contributed to the volatility in EPS.
2. **Margin Pressure and Decrease in Billable Headcount**: FTI Consulting has faced margin pressure and a decrease in billable headcount, which has trended slightly lower in recent quarters. These factors can negatively impact gross profit and, consequently, EPS.
3. **Geopolitical and Economic Turmoil**: Despite the growth in the consulting industry, geopolitical turmoil and economic turbulence can create uncertainty and affect demand for FCN's services. This broader economic environment can influence the company's financial performance.
4. **Investment in Emerging Technologies**: FTI Consulting has been investing in emerging technologies such as AI, which can be costly and may impact short-term profitability. The company's expansion of expertise with new academic affiliates and the launch of advanced AI capabilities are positive steps for long-term growth but may temporarily strain financial performance.

In summary, FCN's EPS volatility this year is primarily driven by revenue decline, margin pressure, and investment in emerging technologies, amidst a challenging economic environment.