Charles River Associates (NASDAQ:CRAI) Releases Quarterly Earnings Results

Key Points

• Charles River Associates reported record third-quarter revenue of $214.9 million, up 15.6% year over year, and EPS of $2.19, beating analyst expectations of $2.07. Net income, diluted EPS, and EBITDA also reached records.
• Management raised fiscal 2026 constant-currency revenue guidance to $830 million–$840 million, from $805 million–$820 million, and projected a 12.2%–12.8% non-GAAP EBITDA margin.
• Project lead flow and new originations each rose more than 20% year over year, though management is monitoring a sharp sequential drop in global M&A activity. CRA also increased its quarterly dividend 17.5% to $0.67 per share.

Charles River Associates (NASDAQ:CRAI - Get Free Report) posted its earnings results on Thursday. The business services provider reported $2.19 EPS for the quarter, topping the consensus estimate of $2.07 by $0.12, FiscalAI reports. Charles River Associates had a net margin of 6.20% and a return on equity of 27.31%. The firm had revenue of $214.92 million for the quarter, compared to analysts' expectations of $199.04 million.

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

• CRA posted record third-quarter revenue of $214.9 million, up 15.6% year over year, with record net income, diluted EPS and EBITDA. Seven practices grew, and Forensic Services, Life Sciences, and Risk, Investigations & Analytics each delivered double-digit revenue growth.
• Management raised fiscal 2026 constant-currency revenue guidance to $830 million–$840 million, from $805 million–$820 million, and narrowed its non-GAAP EBITDA margin outlook to 12.2%–12.8%.
• Weekly project lead flow and new project originations each increased more than 20% year over year; consultant utilization reached 78%, and headcount grew 6.2%. Management said it remains comfortable with mid-single-digit headcount growth for the full year, rather than guiding to high-single-digit growth.
• CRA raised its quarterly dividend 17.5% to $0.67 per share, marking its tenth consecutive annual increase. The company returned $60.3 million to shareholders year to date through dividends and share repurchases.
• Global M&A activity fell 41% sequentially in the third quarter, and management said it is monitoring whether the slowdown is temporary or a broader trend. CRA also expects fiscal 2026 non-cash forgivable-loan amortization expense to rise by about $15 million year over year.

Charles River Associates Trading Up 4.2%

Shares of NASDAQ:CRAI traded up $8.19 during midday trading on Thursday, reaching $202.94. The company had a trading volume of 340,101 shares, compared to its average volume of 110,429. The company's 50 day moving average price is $176.36 and its 200 day moving average price is $166.14. The stock has a market cap of $1.27 billion, a P/E ratio of 27.02, a P/E/G ratio of 1.44 and a beta of 0.64. Charles River Associates has a 52-week low of $132.17 and a 52-week high of $227.29.

Charles River Associates Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Tuesday, November 24th will be issued a $0.67 dividend. This is an increase from Charles River Associates's previous quarterly dividend of $0.57. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.3%. Charles River Associates's payout ratio is presently 30.36%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings raised Charles River Associates from a "hold (c)" rating to a "hold (c+)" rating in a report on Friday, September 25th. One investment analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Charles River Associates has an average rating of "Moderate Buy" and an average target price of $245.00.

Insiders Place Their Bets

In related news, EVP Jonathan Yellin sold 2,250 shares of the firm's stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $173.25, for a total transaction of $389,812.50. Following the completion of the sale, the executive vice president owned 11,153 shares in the company, valued at approximately $1,932,257.25. This trade represents a 16.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.50% of the company's stock.

About Charles River Associates

Charles River Associates, operating as CRA International, Inc, is a global consulting firm that provides economic, financial, and management consulting services. The company advises corporations, law firms, government agencies, and other organizations on complex business, legal, regulatory, and strategic matters.

CRA's services include economic and financial analysis for litigation and regulatory proceedings, antitrust and competition consulting, corporate strategy, business performance improvement, and investigations.

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