CRAI Earnings Prediction
The chart below shows how CRAI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRAI sees a +1.09% change in stock price 10 days leading up to the earnings, and a +4.47% change 10 days following the report. On the earnings day itself, the stock moves by -1.24%. This data can give you a slight idea of what to expect for the next quarter's release.
CRAI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
167.75M
13.69%
-2.15%
Gross Margin
29.60%
12.80%
17.18%
Operating Margin
10.96%
49.93%
66.57%
Net Margin
6.82%
16.98%
79.00%
EPS
1.67
38.02%
77.66%
No Data Available
CRAI Earnings Analysis
CRA International, Inc. Corporation (CRAI.O) Earnings Conference Call
Positive
Historic Revenue Surge: 1. Record Revenue Growth: CRA reported a 13.7% year-over-year increase in revenue, reaching $167.7 million, marking the highest Q3 revenue in the company's history.
Record Profitability Surge: 2. Significant Profitability Increase: Non-GAAP net income, earnings per diluted share, and EBITDA each grew by over 50% year-over-year, representing the highest third quarter profitability metrics in CRA's history.
Legal Services Revenue Surge: 3. Strong Performance in Legal Services: Revenue from legal and regulatory services increased nearly 20% year-over-year, demonstrating robust demand in this segment.
Consultant Utilization Improvement: 4. High Consultant Utilization: Consultant utilization improved to 76%, reflecting effective management and productivity despite a slight decrease in headcount compared to the previous year.
Shareholder Dividend Increase: 5. Increased Shareholder Returns: CRA announced a 17% increase in its quarterly cash dividend, raising it from $0.42 to $0.49 per share, and returned $42.2 million to shareholders year-to-date through dividends and share repurchases.
Negative
Consultant Headcount Decline: 1. Declining Consultant Headcount: CRA's consultant headcount decreased by 3.6% year-over-year, from 1,014 in Q3 2023 to 978 in Q3 2024, indicating potential challenges in staffing and resource allocation.
Rising Days Sales Outstanding: 2. Increased Days Sales Outstanding (DSO): DSO rose to 122 days in Q3 2024, up from 110 days at the end of Q2 2024, suggesting slower cash collection and potential liquidity issues.
Increased Tax Burden: 3. Higher Effective Tax Rate: The effective tax rate for Q3 2024 was 28.5%, significantly higher than the 18.0% rate in Q3 2023, which may impact net income and profitability.
Net Debt Analysis: 4. Net Debt Position: CRA concluded the quarter with net debt of $35.5 million, reflecting a reliance on borrowed funds and potential financial strain amid capital expenditures and talent investments.
Life Sciences Revenue Decline: 5. Decline in Life Sciences Practice: The Life Sciences practice experienced a modest year-over-year revenue decline, indicating stagnation in a key segment of CRA's business.
CRAI FAQs
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CRAI Earning Call Sentiment
CRA International, Inc. (CRAI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CRAI.O
-4.73%Positive
The earnings call summary reflects strong financial performance with a 13.7% revenue increase and over 50% growth in non-GAAP net income and EBITDA. The company raised its revenue and EBITDA margin guidance, indicating optimism. Shareholder returns are favorable with increased dividends and share repurchases. The Q&A reveals stable demand and strong growth in specific sectors, despite vague responses on regulatory impacts. Considering the market cap of $1.2 billion, the positive sentiment is likely to result in a 2% to 8% stock price increase over the next two weeks.
