Charles River Associates (NASDAQ:CRAI) Issues Earnings Results

Key Points

• Charles River Associates reported quarterly EPS of $1.99, which came in slightly below analysts’ expectations of $2.02, even though revenue of $200.98 million beat estimates.
• The company highlighted record quarterly revenue of about $201 million, with broad-based growth across practices and international revenue up 20.3% year over year.
• Operational trends improved, including higher consultant headcount and utilization, while the company also returned cash to shareholders and expanded its credit facility despite profitability pressure from forgivable loan amortization.

Charles River Associates (NASDAQ:CRAI - Get Free Report) issued its quarterly earnings results on Thursday. The business services provider reported $1.99 EPS for the quarter, missing analysts' consensus estimates of $2.02 by ($0.03), FiscalAI reports. Charles River Associates had a return on equity of 25.83% and a net margin of 6.22%.The firm had revenue of $200.98 million for the quarter, compared to analyst estimates of $193.81 million.

Here are the key takeaways from Charles River Associates' conference call:

• Company reported a record quarterly revenue of $201.0 million, up 10.5% year-over-year, with broad-based growth across eight practices and international revenue rising 20.3%.
• Demand and operations strengthened — consultant headcount rose 2.5% to 971, utilization improved to 77%, and average weekly project lead flow and new project originations set quarterly records.
• Reported non-GAAP EBITDA was $23.2 million (11.5% margin), but results include $13.8 million of non-cash forgivable loan amortization (up 53% YoY), which materially reduced reported profitability.
• Capital deployment was active — $62.3 million spent on talent, $25.3 million returned to shareholders (dividends and buybacks), the credit facility was increased by $50 million to $300 million, and quarter-end net debt was $159.5 million with $86.7 million total liquidity.

Charles River Associates Trading Up 0.3%

Shares of NASDAQ CRAI traded up $0.46 during trading on Friday, reaching $139.58. 122,453 shares of the company traded hands, compared to its average volume of 182,809. The firm's fifty day simple moving average is $161.81 and its 200 day simple moving average is $180.00. The stock has a market cap of $901.69 million, a P/E ratio of 19.39, a PEG ratio of 1.03 and a beta of 0.75. Charles River Associates has a 12-month low of $134.47 and a 12-month high of $227.29.

Charles River Associates Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Tuesday, May 26th will be paid a dividend of $0.57 per share. The ex-dividend date is Tuesday, May 26th. This represents a $2.28 dividend on an annualized basis and a dividend yield of 1.6%. Charles River Associates's dividend payout ratio (DPR) is presently 31.67%.

Insider Buying and Selling at Charles River Associates

In other Charles River Associates news, EVP Jonathan D. Yellin sold 2,250 shares of Charles River Associates stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $182.27, for a total transaction of $410,107.50. Following the completion of the transaction, the executive vice president owned 14,046 shares in the company, valued at approximately $2,560,164.42. This trade represents a 13.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 4.50% of the company's stock.

Hedge Funds Weigh In On Charles River Associates

Several institutional investors and hedge funds have recently modified their holdings of CRAI. Jump Financial LLC increased its stake in shares of Charles River Associates by 72.3% in the 3rd quarter. Jump Financial LLC now owns 32,642 shares of the business services provider's stock valued at $6,807,000 after purchasing an additional 13,692 shares in the last quarter. BNP Paribas Financial Markets increased its stake in shares of Charles River Associates by 243.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 11,511 shares of the business services provider's stock valued at $2,157,000 after purchasing an additional 8,163 shares in the last quarter. Lazard Asset Management LLC purchased a new position in shares of Charles River Associates in the 2nd quarter valued at about $1,424,000. Kennedy Capital Management LLC increased its stake in shares of Charles River Associates by 63.9% in the 3rd quarter. Kennedy Capital Management LLC now owns 6,410 shares of the business services provider's stock valued at $1,337,000 after purchasing an additional 2,500 shares in the last quarter. Finally, Entropy Technologies LP purchased a new position in shares of Charles River Associates in the 4th quarter valued at about $401,000. Hedge funds and other institutional investors own 84.13% of the company's stock.

Analyst Ratings Changes

CRAI has been the subject of a number of research reports. Weiss Ratings cut Charles River Associates from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, April 24th. Barrington Research reiterated an "outperform" rating and set a $245.00 price objective on shares of Charles River Associates in a research note on Monday, March 2nd. One equities research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $245.00.

Charles River Associates Company Profile

Charles River Associates NASDAQ: CRAI is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients' needs.

The firm's service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.

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