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Charles River (CRAI) Q4 Earnings and Revenues Top Estimates

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

Non-GAAP EPS came in at 95 cents, which beat the Zacks Consensus Estimate by 39.7% and increased 23.4% year over year. Revenues of $137.4 million surpassed the consensus mark by 7.1% and increased 15.2% year over year, driven by strength in all practices.

In the quarter, the company witnessed strong demand across its portfolio of services and geographies. It achieved double-digit revenue growth across both North American and international operations.

Notably, Charles River’s shares have gained 35.2% over the past year, underperforming the 38.8% rally of the industry it belongs to.

Other Quarterly Details

The company delivered 70% utilization and headcount was up by 6.7% year over year. Non-GAAP EBITDA increased 24.1% year over year to $14 million. Non-GAAP EBITDA margin expanded 80 basis points year over year to 10.2%.

The company exited the quarter with cash and cash equivalents of $45.7 million compared with $24.1 million witnessed at the end of the prior quarter. It generated $65.3 million of cash from operating activities and capex was $1.4 million. In the quarter, Charles River paid out $2.1million in dividend and repurchased shares worth $4.6 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

2021 Guidance

The company expects constant currency revenues to be between $530 million and $550 million, and non-GAAP EBITDA margin in the band of 9.5% to 10.2%.

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 Some Other Business Services Companies

Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.

IHS Markit’s  fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.

Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.

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