Charles River Associates (CRAI - Free Report) stock has climbed 5.7% since its second-quarter 2021 earnings release on Aug 5. The price surge can be attributed to better-than-expected earnings and revenue performance, as well as its raised 2021 guidance.
Adjusted earnings per share of $1.53 outpaced the Zacks Consensus Estimate by 64.5% and improved 91.3% year over year. Revenues of $148.2 million surpassed the consensus mark by 7.2% and climbed 20.5% year over year.
Quarterly results were backed by revenue growth of more than 20% in eight practices — Antitrust & Competition Economics, Auctions & Competitive Bidding, Energy, Financial Economics, Intellectual Property, Labor & Employment, Marakon, and Risk, Investigations & Analytics practices. It achieved double-digit revenue growth across both North American and international operations.
So far this year, shares of Charles River have gained 78.7% compared with 26.4% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Other Quarterly Details
The company delivered 75% utilization while headcount was up by 3.9% year over year.
Adjusted EBITDA increased 61.3% year over year to $19.2 million. Adjusted EBITDA margin expanded 330 basis points year over year to 13%.
The company exited the quarter with cash and cash equivalents of $13.9 million compared with $31.6 million witnessed at the end of the prior quarter.
It generated $3.63 million of cash from operating activities and capex was $478 million. In the quarter, Charles River paid out $1.9 million in dividends and repurchased shares worth $25 million.
Raised 2021 Guidance
The company now expects full-year 2021 constant-currency revenues to be between $565 million and $575 million, compared with the previous expectation of $550 million to $570 million. Non-GAAP EBITDA margin is now anticipated in the band of 11.2% to 10.5%, compared with the earlier guidance of 10% to 10.5%.
Currently, Charles River carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
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Charles River Associates (CRAI - Free Report) stock has climbed 5.7% since its second-quarter 2021 earnings release on Aug 5. The price surge can be attributed to better-than-expected earnings and revenue performance, as well as its raised 2021 guidance.
Adjusted earnings per share of $1.53 outpaced the Zacks Consensus Estimate by 64.5% and improved 91.3% year over year. Revenues of $148.2 million surpassed the consensus mark by 7.2% and climbed 20.5% year over year.
Quarterly results were backed by revenue growth of more than 20% in eight practices — Antitrust & Competition Economics, Auctions & Competitive Bidding, Energy, Financial Economics, Intellectual Property, Labor & Employment, Marakon, and Risk, Investigations & Analytics practices. It achieved double-digit revenue growth across both North American and international operations.
So far this year, shares of Charles River have gained 78.7% compared with 26.4% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Other Quarterly Details
The company delivered 75% utilization while headcount was up by 3.9% year over year.
Adjusted EBITDA increased 61.3% year over year to $19.2 million. Adjusted EBITDA margin expanded 330 basis points year over year to 13%.
The company exited the quarter with cash and cash equivalents of $13.9 million compared with $31.6 million witnessed at the end of the prior quarter.
It generated $3.63 million of cash from operating activities and capex was $478 million. In the quarter, Charles River paid out $1.9 million in dividends and repurchased shares worth $25 million.
Raised 2021 Guidance
The company now expects full-year 2021 constant-currency revenues to be between $565 million and $575 million, compared with the previous expectation of $550 million to $570 million. Non-GAAP EBITDA margin is now anticipated in the band of 11.2% to 10.5%, compared with the earlier guidance of 10% to 10.5%.
Currently, Charles River carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
Free Report – The Bitcoin Profit Phenomenon
Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
Download Now – Today It’s FREE >>
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