FTI Consulting Inc. (NYSE: FCN), a business advisory firm, has extensive capabilities and a solid financial performance. The company helps businesses overcome complex challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. Other consulting service areas include economics, strategic and financial communications, and technology.

Recently, the company reported fourth quarter results that beat consensus expectations. Net income totaled $31.2 million, or 58 cents a share, compared with $30.8 million, or 60 cents a share, in prior year quarter. Quarterly revenue jumped 15.1% to $322.9 million from $280.5 million.

The company also issued strong FY09 guidance. The company expects fiscal 2009 earnings to be in the range of $2.55 to $2.70 a share, and revenue in the range of $1.45 billion and $1.55 billion.

The company is expected to benefit from unique opportunities created by recession. There has been a surge in demand for services related to restructuring, litigation, bankruptcy and increased regulation. During the fourth quarter alone, the revenue at company's Corporate Finance/Restructuring division soared 45.7% to $107.3 million from $73.6 million last year, with 33.1% organic growth.

Last year, the company was involved in many of the front page bankruptcies, including Circuit City and retail, Tribune Newspaper group, Lehman Brother and Washington Mutual, to name a few.

The company is also active in reviving some of the world's premier companies as they battle challenges to their reputations from the adverse circumstance that are impacting their operation. Examples include AIG, Northern Rock, MP Global, RBS and Society General.

With recession showing no signs of abating, more and more companies are expected to file for bankruptcies and initiate restructuring. According to research firm BankruptcyData.com, bankruptcies by publicly traded U.S. companies are running at twice their 2008 pace so far this year.

Moreover, Obama administration's emphasis on increased regulation also favors FTI's business. The M&A activity too is expected to get a boost as cash rich companies intensify their hunt for companies with depressed valuations.

The company is also quite serious about expanding its activity in overseas market. In 2008 alone, nearly 18% of the revenues were generated from outside the US.

During a conference call with analysts, Jack Dunn, FTI's president and chief executive, said that the company expects "to experience continued strong demand throughout the year for restructuring and dispute engagements in connection with the recession and credit crisis."

At a time when most of the companies are reducing headcounts in anticipation of tougher climate, FTI Consulting is actually increasing its staff strength. The company plans to boost its staff by about 14% in 2009, which in itself is quite a bullish signal.

The shares of the company currently trade on a forward price to earnings ratio (P/E) of 14.43 and PEG ratio of 0.97. Overall, the seven analysts who track this stock for Wall Street hold bullish views for the stock of the company. Investors may add FTI Consulting to their portfolio as the company is poised to perform well amid economic and regulatory issues.

Disclosure: Author does not own any of the stocks discussed here.