We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Charles River Associates (CRAI) Lags Q1 Earnings Estimates
Read MoreHide Full Article
Charles River Associates (CRAI - Free Report) delivered disappointing first-quarter 2019 results, with earnings and revenues missing the Zacks Consensus Estimate.
Non-GAAP earnings of 54 cents per share lagged the consensus mark by 7 cents and decreased 11.5% year over year. Revenues came in at $105.8 million, which missed the consensus mark by roughly $2 million but increased 6.4% year over year.
Shares of Charles River have declined 4.1% over the past three months against the 10.8% rally of the industry it belongs to.
Other Quarterly Details
The company delivered 75% utilization and headcount was up 6.2%, translating into 7.9% year-over-year revenue growth on a constant-currency basis.
Geographically, revenues from North American and European operations grew 6% and 7.9% year over year, respectively.
In the reported quarter, non-GAAP EBITDA decreased 1.2% year over year to $8.5 million. Non-GAAP EBITDA margin declined 70 basis points (bps) year over year to 8%.
The company exited the first quarter with cash and cash equivalents of 15 million compared with $38 million at the end of the prior quarter. It used $56.6 million of cash in operating activities and capex was 0.8 million.
Dividend and Share Repurchase
In the quarter, Charles River returned $6 million of capital to shareholders, including $4.3 million for repurchases of roughly 87,000 shares and $1.7 million of dividend payments.
Concurrent with the earnings release, the company announced a quarterly cash dividend of 20 cents per share, payable on Jun 14, 2019 to shareholders of record as of May 28, 2019.
2019 Guidance
Management reiterated 2019 guidance. On a constant-currency basis relative to fiscal 2018, revenues are expected in the range of $430-$445 million and non-GAAP EBITDA margin is projected in the range of 9.2-10.2%. The Zacks Consensus Estimate for 2019 revenues is pegged at $435 million.
Zacks Rank & Key Picks
Charles River currently carries a Zacks Rank #4 (Sell).
Long-term expected EPS (three to five years) growth rate for WEX, Automatic Data Processing and FLEETCOR is 15%, 13% and 16.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Charles River Associates (CRAI) Lags Q1 Earnings Estimates
Charles River Associates (CRAI - Free Report) delivered disappointing first-quarter 2019 results, with earnings and revenues missing the Zacks Consensus Estimate.
Non-GAAP earnings of 54 cents per share lagged the consensus mark by 7 cents and decreased 11.5% year over year. Revenues came in at $105.8 million, which missed the consensus mark by roughly $2 million but increased 6.4% year over year.
Shares of Charles River have declined 4.1% over the past three months against the 10.8% rally of the industry it belongs to.
Other Quarterly Details
The company delivered 75% utilization and headcount was up 6.2%, translating into 7.9% year-over-year revenue growth on a constant-currency basis.
Geographically, revenues from North American and European operations grew 6% and 7.9% year over year, respectively.
Charles River Associates Revenue (TTM)
Charles River Associates revenue-ttm | Charles River Associates Quote
In the reported quarter, non-GAAP EBITDA decreased 1.2% year over year to $8.5 million. Non-GAAP EBITDA margin declined 70 basis points (bps) year over year to 8%.
The company exited the first quarter with cash and cash equivalents of 15 million compared with $38 million at the end of the prior quarter. It used $56.6 million of cash in operating activities and capex was 0.8 million.
Dividend and Share Repurchase
In the quarter, Charles River returned $6 million of capital to shareholders, including $4.3 million for repurchases of roughly 87,000 shares and $1.7 million of dividend payments.
Concurrent with the earnings release, the company announced a quarterly cash dividend of 20 cents per share, payable on Jun 14, 2019 to shareholders of record as of May 28, 2019.
2019 Guidance
Management reiterated 2019 guidance. On a constant-currency basis relative to fiscal 2018, revenues are expected in the range of $430-$445 million and non-GAAP EBITDA margin is projected in the range of 9.2-10.2%. The Zacks Consensus Estimate for 2019 revenues is pegged at $435 million.
Zacks Rank & Key Picks
Charles River currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Zacks Business Services sector are WEX (WEX - Free Report) , Automatic Data Processing (ADP - Free Report) and FLEETCOR . While WEX sports a Zacks Rank #1 (Strong Buy), Automatic Data Processing and FLEETCOR carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term expected EPS (three to five years) growth rate for WEX, Automatic Data Processing and FLEETCOR is 15%, 13% and 16.5%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>