CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) , reported better-than-expected second-quarter fiscal 2022 results. CRAI did not raise its revenue guidance despite strong demand for consulting services. This might have failed to impress investors as the stock plunged 9.8% since the earnings release on Aug 4.
Non-GAAP EPS (excluding 1 cent from non-recurring items) came in at $1.58, which beat the Zacks Consensus Estimate by 25.4% and increased 3.3% year over year. Revenues of $149.1 million surpassed the consensus mark by 0.3% and increased nearly 1% year over year.
Other Quarterly Details
Charles River delivered 77% utilization, while headcount was up by 3.6% year over year. Non-GAAP EBITDA increased 3% year over year to $19.8 million. Non-GAAP EBITDA margin expanded 30 basis points year over year to 13.3%.
CRAI exited the quarter with $15.6 million cash compared with $43.7 million witnessed at the end of the prior quarter. Charles River used cash worth $17 million in operating activities while capex was $7.21 billion. In the quarter, CRAI paid out $2.25 million of dividends and repurchased shares worth $17.7 million.
2022 Guidance
For 2022, on a constant-currency basis relative to 2021, Charles River reaffirmed its previous revenue guidance between $585 million and $605 million.
CRAI raised its view for non-GAAP EBITDA margin, which is now expected in the range of 11.3-12% compared with the prior expectation of 10.8-11.5%. Currently, Charles River carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) , reported better-than-expected second-quarter fiscal 2022 results. CRAI did not raise its revenue guidance despite strong demand for consulting services. This might have failed to impress investors as the stock plunged 9.8% since the earnings release on Aug 4.
Non-GAAP EPS (excluding 1 cent from non-recurring items) came in at $1.58, which beat the Zacks Consensus Estimate by 25.4% and increased 3.3% year over year. Revenues of $149.1 million surpassed the consensus mark by 0.3% and increased nearly 1% year over year.
Other Quarterly Details
Charles River delivered 77% utilization, while headcount was up by 3.6% year over year. Non-GAAP EBITDA increased 3% year over year to $19.8 million. Non-GAAP EBITDA margin expanded 30 basis points year over year to 13.3%.
CRAI exited the quarter with $15.6 million cash compared with $43.7 million witnessed at the end of the prior quarter. Charles River used cash worth $17 million in operating activities while capex was $7.21 billion. In the quarter, CRAI paid out $2.25 million of dividends and repurchased shares worth $17.7 million.
2022 Guidance
For 2022, on a constant-currency basis relative to 2021, Charles River reaffirmed its previous revenue guidance between $585 million and $605 million.
CRAI raised its view for non-GAAP EBITDA margin, which is now expected in the range of 11.3-12% compared with the prior expectation of 10.8-11.5%. Currently, Charles River carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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