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Why Is CRA (CRAI) Down 29.6% Since Last Earnings Report?
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It has been about a month since the last earnings report for CRA International (CRAI - Free Report) . Shares have lost about 29.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CRA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Charles River Lags on Q4 Earnings, Revenues Beat Estimates
Charles River Associates 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.
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 company expects non-GAAP EBITDA margin in the range of 9.2% to 10.2%.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
At this time, CRA has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CRA has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is CRA (CRAI) Down 29.6% Since Last Earnings Report?
It has been about a month since the last earnings report for CRA International (CRAI - Free Report) . Shares have lost about 29.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CRA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Charles River Lags on Q4 Earnings, Revenues Beat Estimates
Charles River Associates 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.
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 company expects non-GAAP EBITDA margin in the range of 9.2% to 10.2%.
How Have Estimates Been Moving Since Then?
Estimates review followed a downward path over the past two months.
VGM Scores
At this time, CRA has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CRA has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.