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CRA International (CRAI) Shares Up 5% Post Q4 Earnings Beat

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CRA International, Inc. (CRAI - Free Report) reported solid fourth-quarter 2023 results. The better-than-expected results impressed investors as the stock gained 4.9% since the earnings release on Feb 29.

CRAI’s earnings per share (EPS) (excluding 1 cent from non-recurring items) came in at $1.63, which surpassed the Zacks Consensus Estimate by 48.2% and increased 37% year over year. Revenues of $161.6 million beat the consensus mark by 8.1% and increased 11.5% from the year-ago quarter.

Charles River’s shares have gained 27.3% over the past six months, significantly outperforming the 18% rally of the industry it belongs to.

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

Other Quarterly Details

The company delivered 73% utilization while headcount was up 6.9% year over year. Non-GAAP EBITDA increased 16.7% year over year to $19 million, topping our estimate of $13.7 million. Non-GAAP EBITDA margin increased 60 basis points to 11.8%, beating our estimated margin of 9.2%.

The company exited the quarter with a cash and cash equivalents balance of $45.6 million compared with $27.6 million witnessed at the end of third-quarter 2023. It generated $60.1 million of cash from operating activities and capex was $358 thousand. In the quarter, Charles River paid out $3 million in dividends.

2024 Guidance

Charles River now anticipates revenues between $645 million and $675 million. Non-GAAP EBITDA margin is currently expected in the range of 10.8-11.5%.

Currently, Charles River carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots of Peers

S&P Global Inc. (SPGI - Free Report) reported mixed fourth-quarter 2023 results.

SPGI’s adjusted EPS of $3.13 missed the Zacks Consensus Estimate by 0.6% but increased 23.2% year over year. Revenues of $3.2 billion surpassed the consensus estimate by 0.5% and improved 7.3% year over year, backed by strong performances in all divisions.

Insperity, Inc. (NSP - Free Report) reported solid fourth-quarter 2023 results.

NSP’s adjusted earnings (excluding 6 cents from non-recurring items) of 46 cents per share outpaced the consensus estimate and our estimate by 21.1% but declined 53.5% year over year.


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