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Charles River (CRAI) Q4 Earnings Lag Estimates, Revenues Top
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Charles River Associates (CRAI - Free Report) reported mixed fourth-quarter 2019 results with earnings missing the Zacks Consensus Estimate but revenues beating the same.
Non-GAAP EPS came in at 77 cents, which missed the Zacks Consensus Estimate by 1.3% and decreased 8.3% year over year. Revenues of $119.3 million surpassed the consensus mark by 3.6% and increased 9.7% year over year.
The company delivered double-digit year-over-year revenue growth in Finance, Forensic Services and Labor & Employment practices.
The company’s shares have declined 3.3% over the past year, against the 11.9% growth of the industry it belongs to.
Other Quarterly Details
The company delivered 72% utilization and headcount was up by 13.4%.
Non-GAAP EBITDA decreased 2.4% year over year to $11.3 million. Non-GAAP EBITDA margin decreased 120 basis points (bps) year over year to 9.4%.
The company exited the fourth quarter with cash and cash equivalents of $25.6 million compared with $19.8 million at the end of the prior quarter. It generated $47.7 million of cash from operating activities and capex was $4.1 million. In the quarter, Charles River paid out $1.8 million of dividend.
2020 Guidance
Charles River expects 2020 revenues in the range of $495 million to $510 million. The Zacks Consensus Estimate is pegged at $510.4 million. The company expects non-GAAP EBITDA margin in the range of 9.2% to 10.2%.
Zacks Rank & Other Stocks to Consider
Currently, Charles River carries a Zacks Rank #2 (Buy).
Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 11.9%, respectively.
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Charles River (CRAI) Q4 Earnings Lag Estimates, Revenues Top
Charles River Associates (CRAI - Free Report) reported mixed fourth-quarter 2019 results with earnings missing the Zacks Consensus Estimate but revenues beating the same.
Non-GAAP EPS came in at 77 cents, which missed the Zacks Consensus Estimate by 1.3% and decreased 8.3% year over year. Revenues of $119.3 million surpassed the consensus mark by 3.6% and increased 9.7% year over year.
The company delivered double-digit year-over-year revenue growth in Finance, Forensic Services and Labor & Employment practices.
The company’s shares have declined 3.3% over the past year, against the 11.9% growth of the industry it belongs to.
Other Quarterly Details
The company delivered 72% utilization and headcount was up by 13.4%.
Non-GAAP EBITDA decreased 2.4% year over year to $11.3 million. Non-GAAP EBITDA margin decreased 120 basis points (bps) year over year to 9.4%.
The company exited the fourth quarter with cash and cash equivalents of $25.6 million compared with $19.8 million at the end of the prior quarter. It generated $47.7 million of cash from operating activities and capex was $4.1 million. In the quarter, Charles River paid out $1.8 million of dividend.
2020 Guidance
Charles River expects 2020 revenues in the range of $495 million to $510 million. The Zacks Consensus Estimate is pegged at $510.4 million. The company expects non-GAAP EBITDA margin in the range of 9.2% to 10.2%.
Zacks Rank & Other Stocks to Consider
Currently, Charles River carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are Interpublic (IPG - Free Report) , Omnicom (OMC - Free Report) and Genpact (G - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term expected EPS (three to five years) growth rate for Interpublic, Omnicom and Genpact is 4.5%, 5.6% and 11.9%, respectively.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%. This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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