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Why Is CRA International (CRAI) Up 12.5% Since Its Last Earnings Report?
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A month has gone by since the last earnings report for CRA International,Inc. (CRAI - Free Report) . Shares have added about 12.5% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is CRAI due for a pullback? 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 catalysts.
CRA International Tops Q4 Earnings, Revenue Estimates
CRA International reported strong fourth-quarter 2017 results with robust year-over-year increase in revenues and adjusted earnings.
Adjusted earnings for the quarter were $5.9 million or 70 cents per share compared with $2.1 million or 24 cents in the year-earlier quarter. The bottom line comfortably surpassed the Zacks Consensus Estimate of 34 cents. The substantial year-over-year increase in adjusted earnings was aided by a strong rise in revenues and favorable tax act. The company reported adjusted earnings of $1.91 per share for the year ended Dec 30, 2017 compared with $1.33 in the prior year.
Quarter Details
GAAP loss for the quarter was $2.3 million or 28 cents per share against gain of $2.1 million or 24 cents per share in the year-ago quarter.
Non-GAAP revenues came in at $97 million compared with $79.6 million in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $90 million. The rise was driven primarily by broad-based revenue growth in its Energy, Forensic Services, Life Sciences and Marakon Practices and strong contributions by its Antitrust & Competition Economics practice. International operations showed substantial growth with North American operations reflecting nearly 15% rise and European operations growing more than 50% year over year. Non-GAAP revenues for 2017 were $370.1 million compared with $323.9 million in 2016.
Margins
Non-GAAP adjusted EBITDA was $15.8 million compared with $12.9 million in the year-earlier quarter. Non-GAAP adjusted EBITDA was 16.3% of non-GAAP revenues for the quarter, up 10 basis points year over year.
Balance Sheet and Cash Flow
As of Dec 30, 2017, CRA International had $54 million in cash and cash equivalents compared with $53.5 million in the prior-year period. Long-term liabilities were $32.5 million compared with $21.7 million a year ago. For 2017, the company generated $45.9 million of cash from operating activities compared with $48.2 million in the prior year. As of Dec 30, 2017, the company had $11.5 million of borrowings under line of credit compared with $7.5 million a year ago.
Moving Forward
For full-year 2018, CRA International expects revenues to lie between $380 million and $392 million and non-GAAP EBITDA margin to be 8.8-9.8%.
How Have Estimates Been Moving Since Then?
Fresh estimate followed an upward path over the past two months. In the past month, the consensus estimate has shifted by 22% due to these changes.
At this time, CRAI has a great Growth Score of A, though it is lagging a bit on the momentum front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second 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.
Based on our scores, the stock is more suitable for growth investors than those looking for value and momentum.
Outlook
CRAI has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is CRA International (CRAI) Up 12.5% Since Its Last Earnings Report?
A month has gone by since the last earnings report for CRA International,Inc. (CRAI - Free Report) . Shares have added about 12.5% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is CRAI due for a pullback? 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 catalysts.
CRA International Tops Q4 Earnings, Revenue Estimates
CRA International reported strong fourth-quarter 2017 results with robust year-over-year increase in revenues and adjusted earnings.
Adjusted earnings for the quarter were $5.9 million or 70 cents per share compared with $2.1 million or 24 cents in the year-earlier quarter. The bottom line comfortably surpassed the Zacks Consensus Estimate of 34 cents. The substantial year-over-year increase in adjusted earnings was aided by a strong rise in revenues and favorable tax act. The company reported adjusted earnings of $1.91 per share for the year ended Dec 30, 2017 compared with $1.33 in the prior year.
Quarter Details
GAAP loss for the quarter was $2.3 million or 28 cents per share against gain of $2.1 million or 24 cents per share in the year-ago quarter.
Non-GAAP revenues came in at $97 million compared with $79.6 million in the year-ago quarter. It surpassed the Zacks Consensus Estimate of $90 million. The rise was driven primarily by broad-based revenue growth in its Energy, Forensic Services, Life Sciences and Marakon Practices and strong contributions by its Antitrust & Competition Economics practice. International operations showed substantial growth with North American operations reflecting nearly 15% rise and European operations growing more than 50% year over year. Non-GAAP revenues for 2017 were $370.1 million compared with $323.9 million in 2016.
Margins
Non-GAAP adjusted EBITDA was $15.8 million compared with $12.9 million in the year-earlier quarter. Non-GAAP adjusted EBITDA was 16.3% of non-GAAP revenues for the quarter, up 10 basis points year over year.
Balance Sheet and Cash Flow
As of Dec 30, 2017, CRA International had $54 million in cash and cash equivalents compared with $53.5 million in the prior-year period. Long-term liabilities were $32.5 million compared with $21.7 million a year ago. For 2017, the company generated $45.9 million of cash from operating activities compared with $48.2 million in the prior year. As of Dec 30, 2017, the company had $11.5 million of borrowings under line of credit compared with $7.5 million a year ago.
Moving Forward
For full-year 2018, CRA International expects revenues to lie between $380 million and $392 million and non-GAAP EBITDA margin to be 8.8-9.8%.
How Have Estimates Been Moving Since Then?
Fresh estimate followed an upward path over the past two months. In the past month, the consensus estimate has shifted by 22% due to these changes.
CRA International,Inc. Price and Consensus
CRA International,Inc. Price and Consensus | CRA International,Inc. Quote
VGM Scores
At this time, CRAI has a great Growth Score of A, though it is lagging a bit on the momentum front with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second 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.
Based on our scores, the stock is more suitable for growth investors than those looking for value and momentum.
Outlook
CRAI has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.