CRA International, Inc., which conducts business as Charles River Associates CRAI, reported mixed first-quarter fiscal 2023 results, wherein earnings missed the Zacks Consensus Estimates but revenues beat.
There has been no impact of the disappointing earnings performance on the stock so far since the date of the earnings release on May 4.
What the Q1 Earnings Report Unveils
Non-GAAP EPS (excluding 6 cents from non-recurring items) was $1.29, which missed the Zacks Consensus Estimate by 3%. Moreover, quarterly earnings decreased 16% from the year-ago fiscal quarter’s reported number. Revenues of $152.8 million surpassed the Zacks Consensus Estimate by 0.2% and increased 3% from the year-ago fiscal quarter’s reported figure.
Charles River delivered 70% utilization, while headcount was up by 10.7% from the year-earlier fiscal quarter’s reported number. Non-GAAP EBITDA decreased 10.7% from the prior-year fiscal quarter’s reading to $16.7 million. Non-GAAP EBITDA margin plunged 170 basis points from the year-ago fiscal quarter’s reported figure to 10.9%.
CRAI exited the quarter with $35.5 million of cash compared with $31.4 million at the end of the prior fiscal quarter. Charles River used cash worth $70.1 million in operating activities, while capex was $5.6 billion.
Charles River Associates Price, Consensus and EPS Surprise
Charles River Associates price-consensus-eps-surprise-chart | Charles River Associates Quote
In the reported quarter, CRAI paid out $2.7 million as dividends. The company repurchased approximately 181,000 shares worth $20.6 million.
Reposts 2023 Guidance
For 2023, on a constant currency basis, relative to fiscal 2022, Charles River expects revenues to be between $615 million and $640 million. The midpoint of the guided range ($627.5 million) is, however, pegged below the Zacks Consensus Estimate of $630.29 million.
CRAI expects a non-GAAP EBITDA margin in the range of 10.8-11.5%. Currently, Charles River carries a Zacks Rank #3 (Hold). 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 better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimate by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax EFX also reported better-than-expected first-quarter 2023 results.
EFX’s adjusted earnings of $1.43 per share beat the consensus mark by 4.4%. However, the bottom line declined 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5%. The top line decreased 4.5% year over year.
ManpowerGroup MAN reported lower-than-expected first-quarter 2023 results.
MAN’s adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year.
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