WASHINGTON, DC — FTI Consulting has reported dismal results for Q2 of this year, with overall revenues down 3.4% to $444.7 million, missing the Zacks Consensus Estimate of $455 million.

The company also reported that revenues from its Strategic Communications unit (previously known as PR firm Financial Dynamics) declined 7.4% to $46.2 million in the quarter compared to $49.9 million in same quarter in 2016, or 4% on a constant currency basis. It blamed the communications downturn on a drop in project-based revenues in North America, particularly for its financial communications and corporate reputation services.

Adjusted segment EBITDA for its Strategic Communcations unit also dropped, to $4.9 million, or 10.5% of segment revenues, from $8.4 million, or 16.9% of segment revenues, in the prior year quarter.  

The Holmes Report revealed earlier this month that four senior communications executives — including Gulf head John Hobday, Asia-Pacific lead Paul Marriott (for a major role at Macquarie Bank) and veteran exec Jon Aarons — are stepping down from the firm. A source pointed to difficult trading conditions at the consulting firm, which are expected to limit investment in its Strategic Communications business, particularly beyond mature markets.

With adjusted earnings of $16.1 million or 40 cents per share compared with $27.6 million or 66 cents per share in 2016, FTI Consulting's adjusted earnings missed the Zacks Consensus Estimate of 53 cents. 

"We had a slow start to 2017," said FTI Consulting CEO Steven Gunby. "Despite this, we continue to expect a stronger second half of the year. This expectation is supported by the strong sequential improvement compared to the first quarter and significant new wins in our Corporate Finance & Restructuring segment; continued investment where we have confidence we can grow; and the disciplined actions we have taken to align costs with demand and reduce overhead.

"We believe this combination of sustained investment, disciplined cost control and the strength of our franchise will translate into second half financials that more closely reflect the underlying strength of our businesses."