Charles River (CRAI) Banks on Global Presence & Diversification.
CRA International, Inc., which conducts business as Charles River Associates CRAI,has outperformed its industry in the past six months with its shares surging 22.4% compared to the industry’s 6.9% increase.
CRAI has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get a true sense of the quality and sustainability of its growth.
Charles River Associates Price
Charles River Associates price | Charles River Associates Quote
Charles River reported lower-than-expected fourth-quarter fiscal 2022 results. Non-GAAP EPS came in at $1.19, missing the Zacks Consensus Estimate by 15%. However, the quarterly earnings increased 4.4% from the year-ago quarter’s reported number. Revenues of $145 million also missed the Zacks Consensus Estimate by 2.4% but increased 7.6% from the year-ago quarter’s reported figure.
Current Situation of CRAI
Charles River has a diversified business with service offerings across areas of functional expertise, client base and geographical regions. This multidisciplinary setup enables it to bring experts from all fields under one platform. The diversification in business helps reduce the company’s dependence on any specific market, industry or geographic area. It also increases the company’s ability to adapt to changing conditions.
CRAI has been consistent with returning value to its shareholders. In the last year, the company has returned $27.6 million to its shareholders in the form of share repurchases and $9.58 million as dividends.
Charles River Associates operates through a global network of coordinated offices spread across North America and Europe. The company’s international presence provides it the opportunity to work with the world’s leading professionals on multiple issues.
The company’s human capital is one of its biggest assets. Almost three-fourths of the company’s senior consultants are highly educated, with a doctorate or other advanced degrees and are recognized experts in their respective fields. In 2022, the company had 939 consulting staff, which includes 149 officers, 496 other senior staff and 294 junior staff.
The key areas of focus for the company are generating balanced and profitable growth across the organization through optimum organic and inorganic means, strengthening client relationships within two lines of business and simplifying internal processes.
Some Concerning Points
Charles River's current ratio at the end of fourth-quarter 2022 was pegged at 1.15, lower than the current ratio of 1.17 reported at the end of the year-ago quarter. It indicates that the company may have problems meeting its short-term debt obligations.
With its global presence, the company is exposed to foreign exchange risks. Around 22% of the company’s revenues are currently being generated outside the United States.
Zacks Rank and Stocks to Consider
CRAI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocksin the Zacks Business Services sector are Omnicom GroupOMC, ICF International ICFI and Gartner, Inc. IT.
For first-quarter 2023, OMC’s earnings expect a slight increase from the year-ago reported figure to $1.4. The company’s earnings are expected to grow 3.5% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised downward by 1.4% in the past 60 days. The consensus estimate for the full year is $7.17 per share. This has been revised upward 13.5% in the past 60 days. OMC currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
For first-quarter 2023, ICFI’s earnings are expected to increase by 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.
The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6.2% in the past 60 days. The consensus estimate for the full year is $6.3 per share. This has been revised upward 7.3% in the past 60 days. The company currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised upward 3.6% in the past 60 days. The consensus estimate for the full year is $9.49 per share. This has been revised upward 1.2% in the past 60 days. The company currently carries a Zacks Rank #2(Buy).
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