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CHICAGO — Navigant Consulting Inc. on Thursday said third-quarter net income rose by 6.4 percent, but that's mainly from cost cuts including layoffs instead of revenue growth.
However, the consulting firm said business has been improving in recent quarters, with stronger demand for its services in litigation and investigations related to the financial markets, white collar lawsuits, construction disputes, among others.
As the global economic crisis spreads, a new class of litigation has arisen related to employment class actions, contract disputes, data breaches and trade secrets theft.
Navigant earned $8.3 million, or 17 cents per share, compared with $7.8 million, or 16 cents, in the same quarter a year ago. Revenue fell to $177.4 million from $198.1 million.
Analysts were expecting 16 cents per share in earnings and revenue of $171 million, according to Thomson Reuters.
The quarter included $1.5 million, or 2 cents per share, in severance costs.
Navigant said it expects to report revenue of $690 million to $710 million for 2009 and earnings of 60 to 70 cents before severance and other operating costs.
Analysts were forecasting $695.2 million in revenue and 63 cents per share in earnings.
Shares of Navigant, based in Chicago, were up $1.48 or 11.7 percent to $14.17 in afternoon trading.
