About a month has gone by since the last earnings report for CRA International, Inc. (CRAI Quick QuoteCRAI - Free Report) . Shares have added about 7.9% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

CRA International Beats Q3 Earnings on Higher Revenues

CRA International reported third-quarter 2017 GAAP earnings of $3.2 million or 38 cents  per share, almost flat year over year. Non-GAAP earnings in the reported quarter were $3.5 million or 41 cents  per share compared with $3.2 million or 39 cents per share in the year-ago quarter. Adjusted earnings beat the Zacks Consensus Estimate by a penny.

Inside the Headlines

Revenues increased 11.8% year over year to $91.3 million. The rise was driven primarily by broad-based growth in its Energy, Life Sciences and Marakon Practices and strong contributions by its Antitrust & Competition Economics, Financial Economics, and Intellectual Property practices. The company recorded double-digit revenue improvement in its North American and European operations with balanced organic and inorganic growth. Reported revenues matched the Zacks Consensus Estimate.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 8.1% year over year to $14.9 million. The company has been very active with its restructuring efforts and remains on track to curtail its expenses by eliminating excess office space capacity and better rationalizing the remaining office space. CRA International further aims to achieve growth organically in the coming quarters through new engagements and several cross-selling opportunities.

Balance Sheet and Cash Flow

As of Sep 30, 2017, CRA International had cash and cash equivalents of $20.9 million while its long-term liabilities were $28.9 million. Cash from operating activities for the first nine months of the year was $7.8 million compared with $16.2 million in the year-ago quarter. The company extended its $125 million revolving credit facility by another five years and increased its quarterly dividend by 21% year over year to 17 cents per share.

Outlook

Based on its strong performance in the first half of the year, CRA International affimed its guidance for 2017. The company continues to expect non-GAAP revenues from $360–$370 million on favorable growth dynamics. Non-GAAP adjusted EBITDA margin is expected in the range of 15.8–16.6%.

Despite performing well, the company remains cautious on the uncertainties around global economic conditions and short-term challenges resulting from the integration of incoming consultants that could affect its business. Fluctuations in foreign currency exchange rates remain an additional concern.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the past month as none of them issued any earnings estimate revisions.

VGM Scores

At this time, the stock has a nice Growth Score of C, a grade with the same score on the momentum front. Following a similar course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for momentum and growth investors than value investors.

Outlook

The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.