Tags: Navigant | NCI | consulting | stocks | healthcare

Navigant Deftly Navigates Consulting

By    |   Tuesday, 28 Jun 2011 01:46 PM

It's the age of consulting. That puts Navigant (NCI) in an enviable position, with an array of services, including the largest energy consulting practice in the country. Navigant has more than 1,700 consultants and specializes in offering services to law firms, construction companies, energy companies, financial services companies, healthcare companies, and companies involved with public services.

Navigant’s first-quarter earnings report shows that its $100 million of investments last year in hiring and mergers and acquisitions are paying off. One of the major deals was a $37 million purchase of EthosPartners Healthcare Management Group, a consulting firm specializing in physician-related issues.

As for the earnings, Navigant reported that profit surged 36.2 percent in the first quarter to $8.78 million from $6.45 million in the first quarter of 2010. Revenue climbed 3 percent to $188.8 million. The company’s operating profit margin gained to 8.8 percent from 8.4 percent a year earlier.

Navigant’s business consulting practice led the performance, with a 22 percent gain in operating profit. The unit’s focus on the booming healthcare and energy sectors gives it plenty of momentum going forward.

Another promising development was a 3.8 percent increase in revenue for Navigant’s litigation consulting division, which followed two years of losses.

"Our first quarter results began to more fully reflect contributions from recent growth investments in healthcare, energy, disputes and economics,” Navigant CEO William Goodyear said in a statement accompanying the earnings report.

"Top line revenue growth was again up both sequentially and year over year, aided by improving market drivers for our key practice areas."

Healthcare opportunity

Zacks Investment Research has a short-term buy rating on the stock and a long-term neutral rating. On the plus side sit Navigant’s strong first-quarter earnings and the opportunities created by healthcare reform and the purchase of EthosPartners, Zacks analysts write.

On the minus side, the company suffers from a limited consultant utilization rate and inadequate new client growth.

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It's the age of consulting. That puts Navigant (NCI) in an enviable position, with an array of services, including the largest energy consulting practice in the country. Navigant has more than 1,700 consultants and specializes in offering services to law firms, construction...
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2011-46-28
Tuesday, 28 Jun 2011 01:46 PM
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