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Charles River (CRAI) Q3 Earnings and Revenues Top Estimates

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Charles River Associates (CRAI - Free Report) reported solid third-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.

Non-GAAP EPS came in at 76 cents, which beat the Zacks Consensus Estimate by 40.7% but declined 22.4% year over year. Revenues of $121.8 million surpassed the consensus mark by 1.7% and increased 5.3% year over year.

It registered double-digit year-over-year revenue growth in Finance, Energy, Forensic Service, and Risk, Investigations & Analytics practices.

Notably, Charles River’s shares have declined 15.7% year to date against 12.3% growth of the industry it belongs to.

Other Quarterly Details

The company delivered 69% utilization and headcount was up by 11.5% year over year. Non-GAAP EBITDA declined 4.8% year over year to $12 million. Non-GAAP EBITDA margin shrunk 110 basis points (bps) year over year to 9.8%.

The company exited the quarter with cash and cash equivalents of $24.1 million compared with $18.8 million witnessed at the end of the prior quarter. It used $33.6 million of cash in operating activities and capex was $2.2 million. In the quarter, Charles River paid out $1.8 million in dividend and repurchased shares worth $5 million.

Charles River Associates Price, Consensus and EPS Surprise

Charles River Associates Price, Consensus and EPS Surprise

Charles River Associates price-consensus-eps-surprise-chart | Charles River Associates Quote

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.

Performance of Other Business Services Companies

Equifax Inc. (EFX - Free Report) reported third-quarter 2020 adjusted earnings of $1.87 per share that beat the Zacks Consensus Estimate by 16.2% and improved 26.4% on a year-over-year basis. Revenues of $1.07 billion outpaced the consensus estimate by 5.9% and improved 22% year over year.

ManpowerGroup Inc. (MAN - Free Report)  reported third-quarter 2020 earnings of $1.12 per share, beating the consensus mark by 90.5% but declining more than 37.5% year over year. Revenues of $4.58 billion surpassed the consensus mark by 8.7% but declined 12.7% year over year.

IHS Markit Ltd. (INFO - Free Report) recorded third-quarter fiscal 2020 adjusted earnings per share of 77 cents that surpassed the consensus estimate by 11.6% and increased 15% on a year-over-year basis. Total revenues came in at $1.07 billion, marginally surpassing the consensus mark but declining 4% from the year-ago quarter.

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