Company Overview - CRA International (CRAI) shares increased by 5.9% to close at $188.94, following a notable trading volume that exceeded typical levels, contrasting with an 11.1% loss over the past four weeks [1] - The stock is experiencing positive momentum due to a market shift towards high-quality consulting firms amid improving investor sentiment [1] Earnings Expectations - CRA is projected to report quarterly earnings of $2.05 per share, reflecting a year-over-year increase of 1%, with revenues expected to reach $190.02 million, a 7.7% rise from the same quarter last year [2] - The stability of the consensus EPS estimate for CRA over the past 30 days suggests that the stock's price may not continue to rise without corresponding trends in earnings estimate revisions [3] Industry Context - CRA is part of the Zacks Consulting Services industry, where another company, Stantec (STN), saw its stock decrease by 1.9% to $99.08, despite a 7.1% return over the past month [3] - Stantec's consensus EPS estimate has increased by 0.7% over the past month to $0.87, indicating a 10.1% growth compared to the previous year, and it currently holds a Zacks Rank of 2 (Buy) [4]

Core Insights - Charles River Associates (CRAI) is expected to benefit from increased demand for specialized advisory services, leading to strong client relationships and operational efficiency [1][4] - The company reported a profit of $2.06 per share for Q3 2025, exceeding estimates by 14% and showing a 16.4% increase year-over-year, although total revenues of $185.9 million declined by 10.8% year-over-year [3][10] Company Performance - CRAI's consulting services are in high demand due to technological advancements and regulatory complexities, with an anticipated revenue increase of 8.1% in 2025 [4][10] - The company has a strong focus on attracting top talent and providing high-quality consulting services, which enhances its reputation among multinational clients [5][6] Financial Strategies - CRAI has consistently paid dividends, with amounts of $12.3 million in 2024, $10.8 million in 2023, and $9.6 million in 2022, alongside share repurchases totaling $33.3 million in 2024, indicating confidence in its business [7] Industry Challenges - Rising talent costs and increased automation are significant concerns for CRAI, impacting profitability and scalability amid stiff competition from firms like McKinsey & Company and Boston Consulting Group [2][8] - The company's current ratio of 0.9 is below the industry average of 1.19, suggesting potential liquidity challenges [9]

Core Viewpoint - Investors are evaluating Hackett Group (HCKT) and CRA International (CRAI) to determine which stock presents a better value opportunity for investment [1] Valuation Metrics - HCKT has a forward P/E ratio of 11.97, while CRAI has a forward P/E of 25.31, indicating HCKT may be undervalued compared to CRAI [5] - HCKT's PEG ratio is 1.09, which is lower than CRAI's PEG ratio of 1.58, suggesting HCKT offers better value considering expected earnings growth [5] - HCKT's P/B ratio is 5.57, compared to CRAI's P/B of 7.27, further supporting HCKT's valuation advantage [6] Earnings Outlook - Both HCKT and CRAI have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - HCKT is considered the superior value option based on the discussed valuation metrics, despite both companies having solid earnings prospects [7]

Core Insights - The article discusses a recent transaction involving Paul Maleh, President and CEO of CRA International, who sold 7,500 shares for approximately $1.4 million, reflecting a consistent trading pattern [3][4][6]. Company Overview - CRA International provides economic, financial, and management consulting services across various sectors, including finance, energy, healthcare, and technology, leveraging a team of 947 professionals [5]. Transaction Details - The sale of 7,500 shares represented 6.05% of Maleh's direct holdings, reducing his stake to 116,545 shares, or 1.78% of outstanding shares [2]. - The transaction was executed at a weighted average price of $182.97 per share on December 3, 2025 [4]. - This sale aligns with Maleh's median transaction size for open-market sales since April 2024, indicating a pattern of share disposition as his holdings have declined by approximately 38.35% since that time [2][3]. Market Performance - CRA International reported strong financial results on October 3, exceeding analyst expectations for both earnings and revenue, and the stock has seen significant gains, rising over 18% in the past year [7]. - The stock reached an all-time high on January 6, 2026, following a strong performance [7]. Analyst Ratings - Kevin Steinke from Barrington Research has rated CRA International stock as a buy, with a price target of $245, suggesting a potential upside of more than 14% from current prices [8].

Core Insights - Charles River (CRAI) shares have increased by 7% over the past month, significantly outperforming the industry's growth of 0.7% [1][8] - The company's earnings for the fourth quarter of 2025 are projected to rise by 1% year over year, with expected earnings growth of 8.2% in 2025 and 7.3% in 2026. Revenue growth is anticipated at 8.3% in 2025 and 3% in 2026 [1] Revenue Growth Drivers - CRAI's revenue growth is primarily fueled by its consulting and research services, driven by rising demand for specialized advisory services [2] - The company has successfully advised major clients, including UnitedHealth Group and Microsoft, showcasing its ability to meet complex client needs [3] Strategic Focus - CRAI emphasizes high-quality consulting as a key to its success, collaborating with independent experts to enhance its capabilities [3] - The company's strategic approach to strengthening client relationships across various business lines supports long-term growth and customer retention [4] Shareholder Value - CRAI consistently returns value to shareholders through dividends and share repurchases, with dividends increasing from $9.6 million in 2022 to $12.3 million in 2024, and share repurchases rising from $27.6 million to $33.3 million over the same period [5] Liquidity Considerations - The company reported a current ratio of 0.9 in the third quarter of 2025, which is below the industry average of 1.19, indicating potential liquidity concerns [6][8]

Summary of CRA International Conference Call - December 10, 2025 Company Overview - **Company Name**: Charles River Associates (CRA) - **Ticker**: CRAI - **Industry**: Economic consulting and management consulting - **Anniversary**: Celebrated 60th anniversary in 2025 and over 27 years as a publicly traded company [2][3] Core Business Segments - **Revenue Composition**: - Legal and Regulatory: Approximately 80% of total revenue - Management Consulting: Remaining 20% [4] - **Key Practices**: - Antitrust and Competition Economics: 40%-45% of total revenue - Life Sciences, Energy, Auctions and Competitive Bidding, Maritime Practices: Contribute to management consulting [8][9] Financial Performance - **Revenue Growth**: Over 50% growth in the past five years; year-to-date 2025 shows continued growth [11] - **Headcount Growth**: Increased by 20% over the past five years [11] - **Earnings Per Share (EPS)**: Grew by 142% over the past five years [11] - **Shareholder Returns**: Nearly $200 million returned to shareholders through share repurchases and dividends [12] - **Share Repurchase**: Average repurchase price over the past five years was $88, with current trading above $190 [12] Talent and Workforce - **Employee Qualifications**: - Approximately 75% of senior colleagues have advanced degrees; over 40% hold PhDs [5][6] - Less than 10% voluntary turnover among top revenue-generating employees over the past five years [7] - **Diversity**: Employees from over 70 countries, speaking more than 35 languages [6] Market Position and Clientele - **Client Base**: Worked with 85 of the Fortune 100 companies and 98 of the Am Law 100 law firms in the past two years [10] - **Project-Based Business Model**: Trust built on a project-by-project basis rather than subscription-based [10] Investment Thesis - **Long-Term Value Maximization**: Focus on earning returns above the cost of capital and returning excess capital to shareholders [13] - **Organic Growth**: Approximately two-thirds of growth is organic, with a focus on talent acquisition and retention [17] Current Market Dynamics - **M&A Activity**: Increasing momentum in mergers and acquisitions, with CRA involved in significant deals [24] - **Litigation Activity**: Notable increase in litigation filings, indicating a robust demand for consulting services [26] Conclusion - **Outlook**: CRA anticipates continued success and record performance in 2025, with a strong pipeline of new business opportunities and talent acquisition [19][23]

Company Overview - Charles River is entering its 60th year, marking a significant milestone in its history and evolution as a company [2]. Event Context - The discussion is part of a fireside chat hosted by UBS, featuring Charles River's CEO, Paul Maleh, indicating the company's engagement with investors and analysts [1].

Summary of CRA International (NasdaqGS:CRAI) 2025 Conference Call Company Overview - CRA International is celebrating its 60th anniversary, founded in 1965 by professors from Harvard and MIT to provide high-quality research in economics, finance, and strategy to assist business leaders in decision-making [3][4] - The company has approximately 1,000 consulting professionals, with 80% of its business in legal regulatory services and 20% in traditional management consulting [3][17] Financial Performance - CRA has experienced consistent growth of approximately 9%-10% annually since 2012, with profits growing at a faster rate [5][6] - The company does not have annuity-type revenue streams; instead, it operates on a project-by-project basis, requiring proof of value for each assignment [6][17] - Revenue growth is primarily organic, with about two-thirds of the growth coming from selling more hours and services, while rate increases contribute an average of 2%-4% [17] Competitive Landscape - The competitive set varies between legal regulatory services and management consulting, with CRA focusing on its core competencies in economics and regulations within life sciences and energy [21][22] - CRA has been gaining market share over the past dozen years, outpacing industry growth in both legal regulatory and management consulting sectors [22] AI and Technology Integration - AI is seen as an opportunity to enhance efficiency in research projects, but there are limitations regarding accuracy and data usage due to legal constraints [26][27][28] - The company emphasizes the importance of human expertise and creativity in consulting, which may be jeopardized by over-reliance on AI tools [29][30] - AI is also driving demand for legal services due to increased litigation related to property rights disputes [30] Client Relationships and Market Position - CRA serves 85 of the Fortune 100 companies and has worked with 98 of the Am Law 100 law firms, indicating a strong client base [48][49] - The company aims to increase its share of wallet from existing clients, focusing on becoming more client-centric rather than consulting-centric [48][49] Employee Retention and Culture - CRA has maintained a low voluntary attrition rate of around 10% over the past five years, indicating a strong workplace culture and employee satisfaction [39][43] - The company prioritizes creating value for its consultants to retain top talent, emphasizing the quality of colleagues and client relationships [43][44] International Growth Opportunities - Approximately 20% of CRA's revenue comes from international markets, with growth opportunities arising from a more vigorous regulatory environment in Europe compared to the U.S. [65] Revenue Forecasting and Engagements - At any given time, CRA has about 55%-60% of the preceding 12 months' revenue in-house, relying on industry trends and lead flow for revenue forecasting [62][63] - The company anticipates 2025 to be its eighth consecutive record year for revenue and profits, driven by strong client demand [63]

Core Insights - CRA International, Inc. (CRAI) reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate, leading to a 2.8% increase in share price post-earnings release [1] Financial Performance - Quarterly EPS was $2.06, surpassing the Zacks Consensus Estimate by 14% and reflecting a 16.4% increase year over year [3][8] - Total revenues reached $185.9 million, exceeding the Zacks Consensus Estimate by 3.8%, although this represented a 10.8% decline compared to the previous year [3][8] - Non-GAAP EBITDA increased by 14.6% year over year to $24.4 million, with a non-GAAP EBITDA margin improvement of 40 basis points to 13.1% [4] Guidance and Outlook - CRAI raised its 2025 constant-currency revenue guidance to a range of $740-$748 million, up from the previous range of $730-$745 million, with the midpoint exceeding the Zacks Consensus Estimate of $743.1 million [2][8] - The company expects a non-GAAP EBITDA margin in the range of 12.6-13%, an increase from the prior estimate of 12.3-13% [2] Operational Metrics - The company achieved a utilization rate of 77%, while headcount decreased by 1% year over year [4] - Cash and cash equivalents at the end of the second quarter were $22.50 million, down from $26.7 million at the end of December 2024, with $85.25 million generated from operating activities [5]

Core Insights - Charles River Associates (CRA) has strengthened its Forensic Services Practice by appointing David Shin as Vice President, bringing over 20 years of experience in high-stakes investigations related to cyber breaches and regulatory inquiries [2][4]. Company Overview - CRA is a global leader in economic, financial, and management consulting services, advising clients on litigation and regulatory matters, and guiding corporations through critical business strategy issues [5]. - The firm has been operational since 1965 and is headquartered in Boston, with offices worldwide [5]. Forensic Services Practice - CRA's Forensic Services Practice is recognized for handling thousands of client matters annually, focusing on areas such as cybercrime, digital forensics, forensic accounting, and eDiscovery [4]. - The addition of David Shin is expected to enhance the practice's capabilities, particularly in e-Discovery and digital technologies, which are crucial for complex litigation and merger reviews [2][4].