We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Charles River (CRAI) Barely Moves Despite Q2 Earnings Beat
Read MoreHide Full Article
CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) 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 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%.
Recent Earnings Snapshots of Some Service Providers
Omnicom (OMC - Free Report) 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 - Free Report) 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 - Free Report) 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.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Charles River (CRAI) Barely Moves Despite Q2 Earnings Beat
CRA International, Inc., which conducts business as Charles River Associates (CRAI - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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.