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Charles River (CRAI) Stock Up 5.7% Since Q2 Earnings Beat
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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.
Image Source: Zacks Investment Research
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.
Charles River Associates Price, Consensus and EPS Surprise
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%.
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 (CRAI) Stock Up 5.7% Since Q2 Earnings Beat
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.
Image Source: Zacks Investment Research
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.
Charles River Associates Price, Consensus and EPS Surprise
Charles River Associates price-consensus-eps-surprise-chart | Charles River Associates Quote
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.