UPDATE 2-FTI Consulting Q2 profit tops St; outlook disappoints

* Q2 revenue lags Street view

* Q2 EPS $0.69 vs est $0.65

* Keeps 2009 revenue view, raises EPS outlook

* Shares fall as much as 9 pct (Recasts, adds details from conference call, background, share movement)

By Sweta Singh

BANGALORE, Aug 4 (Reuters) - Increased restructuring at U.S. companies helped FTI Consulting Inc (FCN.N) post a better-than-expected quarterly profit, but its 2009 outlook failed to meet investor expectations, sending its shares down as much as 9 percent.

The company's second-quarter revenue, however, fell short of Wall Street estimates. For 2009, it raised its earnings outlook, while reiterating its revenue view.

FTI Consulting shares fell 7 percent to $52.09 in afternoon trade on the New York Stock Exchange. They touched a low of $51.06 earlier.

"We believe the weakness in FTI Consulting is likely due to investor expectations of more upside to second quarter revenue as well as 2009 guidance," analyst Daniel Leben of Robert W. Baird & Co wrote in a note to clients.

Consulting firms, which help companies handle investigations and restructuring, are expected to see a rise in business volume as credit crisis has increased the probability of investigations, litigation and bankruptcies.

But the firms may now be under scrutiny from investors following an accounting scandal at Chicago-based Huron Consulting Group Inc (HURN.O).

On Friday, Huron announced its own corporate meltdown sparked by a bookkeeping scandal that wiped more than two-thirds from its market value.

Huron's audit committee discovered shareholders of four businesses that Huron acquired between 2005 and 2007 redistributed portions of their acquisition-related payments among themselves and to certain Huron employees who were not identified.

In a conference call with analysts, a FTI Consulting executive said: "We have re-examined our accounting treatments, reviewed it with your outside advisors, and again, we believe we account for earn-outs in accordance with GAAP."

The company reaffirmed its 2009 revenue forecast of $1.45 billion to $1.55 billion, but raised its earnings view to a range of $2.65 to $2.75 from its prior view of $2.55 to $2.70 a share.

"While some investors are disappointed that earnings guidance was not increased more dramatically, management is taking the right steps of investing in new initiatives, setting the stage for stronger profitability in 2010," analyst David Gold of Sidoti & Co said.

Analysts expected 2009 earnings of $2.73 a share on revenue of $1.48 billion, according to Reuters Estimates.

Net income for the second quarter was $37.2 million, or 69 cents a share, compared with $34.8 million, or 65 cents a share, in the year-ago period.

Analysts expected the company to earn 65 cents a share.

Revenue for the second quarter was $360.5 million, below analysts' view of $365.4 million.

"The numbers were solid not necessarily spectacular," analyst Sean Jackson of Avondale Partners said. Higher activity in fraud investigations and regulated industries and increasing momentum in strategic mergers and acquisition in certain of the company's practices also helped second-quarter results, FTI Consulting Chief Executive Jack Dunn said in a statement.

Revenue from the company's corporate finance and restructuring segment, its largest division, rose 39 percent to $134.0 million. (Editing by Vinu Pilakkott and Deepak Kannan)