Charles River (CRAI) Barely Moves Despite Q2 Earnings Beat
CRA International, Inc., which conducts business as Charles River Associates CRAI reported impressive second-quarter 2023 results, beating the Zacks Consensus Estimate on both counts. The better-than-expected results, however, failed to impress the market as there has not been any major price change since the earnings release on Aug 3.
Non-GAAP EPS came in at $1.42, which beat the Zacks Consensus Estimate by 5.2% but decreased 10.1% year over year. Revenues of $162 million surpassed the consensus mark by 3.3% and increased 8.6% year over year.
Charles River’s shares have gained 18.5% over the past year, significantly outperforming the 6% rally of the industry it belongs to.
Charles River Associates Price, Consensus and EPS Surprise
Charles River Associates price-consensus-eps-surprise-chart | Charles River Associates Quote
Other Quarterly Details
Charles River delivered 72% utilization while headcount was up by 12.5% year over year. Non-GAAP EBITDA increased 3.9% year over year to $18.8 million. Non-GAAP EBITDA margin contracted 50 basis points year over year to 12.7%.
The company exited the quarter with cash of $14.3 million compared with $35.5 million witnessed at the end of the prior quarter. It generated $5.1 million of cash from operating activities and capex was $720 million. In the quarter, Charles River paid out $2.5 million in dividends and repurchased shares worth $3 million.
2023 Guidance
For 2023, on a constant currency basis relative to 2022, Charles River anticipates revenues between $625 million and $640 million. Non-GAAP EBITDA margin is expected in the range of 11% to 11.7%.
Currently, Charles River carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots of Some Service Providers
Omnicom OMC reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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