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) Q2 Earnings Beat Estimates
Read MoreHide Full Article
Charles River Associates (CRAI - Free Report) delivered mixed second-quarter 2019 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Non-GAAP earnings of 73 cents per share surpassed the consensus mark by 2 cents and increased 9% year over year. Revenues came in at $110.6 million, which missed the consensus mark by $0.3 million but increased 4.8% year over year.
The year-over-year improvement in results was driven by strength across Financial Economics, Antitrust & Competition Economics, Auctions & Competitive Bidding, Intellectual Property, Forensic Services and Life Sciences practices.
Shares of Charles River have declined 3.4% year to date against the 26.9% rally of the industry it belongs to.
Other Quarterly Details
The company delivered 77% utilization and headcount was up 5.7%. Geographically, revenues from North American and European operations grew 2% and 16% year over year, respectively.
In the quarter, non-GAAP EBITDA increased 8.7% year over year to $11.7 million. Non-GAAP EBITDA margin rose 40 basis points (bps) year over year to 10.6%.
The company exited the second quarter with cash and cash equivalents of 15.6 million compared with $15 million at the end of the prior quarter. It generated $10.5 million of cash from operating activities and capex was 3.1 million.
In the quarter, Charles River returned $8.8 million of capital to shareholders, including $7.2 million for repurchases of roughly 177,000 sharesand $1.6 million of dividend payments.
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 in the range of 9.2-10.2%. The Zacks Consensus Estimate for 2019 revenues is pegged at $439.1 million.
The long-term expected EPS (three to five years) growth rate for ICF, Accenture and ExlService is 10%, 10.3% and 10.6%, 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) Q2 Earnings Beat Estimates
Charles River Associates (CRAI - Free Report) delivered mixed second-quarter 2019 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Non-GAAP earnings of 73 cents per share surpassed the consensus mark by 2 cents and increased 9% year over year. Revenues came in at $110.6 million, which missed the consensus mark by $0.3 million but increased 4.8% year over year.
The year-over-year improvement in results was driven by strength across Financial Economics, Antitrust & Competition Economics, Auctions & Competitive Bidding, Intellectual Property, Forensic Services and Life Sciences practices.
Shares of Charles River have declined 3.4% year to date against the 26.9% rally of the industry it belongs to.
Other Quarterly Details
The company delivered 77% utilization and headcount was up 5.7%. Geographically, revenues from North American and European operations grew 2% and 16% year over year, respectively.
In the quarter, non-GAAP EBITDA increased 8.7% year over year to $11.7 million. Non-GAAP EBITDA margin rose 40 basis points (bps) year over year to 10.6%.
The company exited the second quarter with cash and cash equivalents of 15.6 million compared with $15 million at the end of the prior quarter. It generated $10.5 million of cash from operating activities and capex was 3.1 million.
In the quarter, Charles River returned $8.8 million of capital to shareholders, including $7.2 million for repurchases of roughly 177,000 sharesand $1.6 million of dividend payments.
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 in the range of 9.2-10.2%. The Zacks Consensus Estimate for 2019 revenues is pegged at $439.1 million.
Zacks Rank & Other Stocks to Consider
Currently, CRA International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A few other top-ranked stocks in the broader Zacks Business Services sector include ICF International (ICFI - Free Report) , Accenture (ACN - Free Report) and ExlService (EXLS - Free Report) , each carrying a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for ICF, Accenture and ExlService is 10%, 10.3% and 10.6%, 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>>