CRA International, Inc. (CRAI) 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 ...

Financial Data and Key Metrics Changes - For fiscal 2023, CRA reported revenue of $624 million, a 5.6% increase compared to fiscal 2022, marking the sixth consecutive year of record revenue [55][36] - Non-GAAP net income and diluted earnings per share for the fourth quarter increased by 15% and 19% year-over-year, respectively, achieving all-time highs for both metrics [1] - Non-GAAP EBITDA for fiscal 2023 was $68.3 million, with a margin of 11.0% on a constant currency basis [36][85] - Adjusted net cash flows from operations increased 35% year-over-year to $81.6 million, converting 120% of non-GAAP EBITDA into adjusted net cash flows [37][36] Business Line Data and Key Metrics Changes - Seven of CRA's 11 practices grew their top line, with Forensic Services and Labor & Employment delivering double-digit revenue growth compared to fiscal 2022 [1] - The Antitrust & Competition Economics practice saw a 23% increase in worldwide M&A activity in the fourth quarter, leading to record quarterly revenue [33] - Legal and regulatory services revenue increased by 16% in the fourth quarter, surpassing broader market growth rates [56][91] Market Data and Key Metrics Changes - North American operations increased by 5%, while international operations grew by 7% in fiscal 2023 [55] - Total case filings in the fourth quarter were up 10% year-over-year, with total court judgments increasing by 7% [56] Company Strategy and Development Direction - The company aims to balance labor supply with demand for services, ending the quarter with a consulting headcount of 1,004, a 6.9% increase year-over-year [22] - CRA's board authorized an expansion of the share repurchase program by an additional $35 million, reflecting confidence in long-term prospects [28] - The company plans to invest $14 million to $15 million in capital expenditures for IT infrastructure and office expansions to support headcount growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the demand environment, noting improvements in macroeconomic conditions and M&A activity [66][50] - The conversion of project leads into revenue-producing assignments improved significantly in the fourth quarter, aligning with expectations [32] - Management highlighted strong retention rates within the consulting team and a focus on talent investments in high-performing practices [22][87] Other Important Information - CRA's DSO at the end of the fourth quarter was 105 days, down from 114 days in the previous quarter [63] - The effective tax rate for the fourth quarter on a non-GAAP basis was 26.1%, compared to 22% in the same quarter of the previous year [85] Q&A Session Summary Question: Can you discuss the drivers behind the revenue guidance for 2025? - Management noted that the foundation of demand remains strong, with improved conversion rates and project originations contributing to the guidance [66][43] Question: What are the plans for capital expenditures and investments? - Management indicated that investments will focus on expanding office locations and upgrading IT infrastructure to support growth [45][38] Question: How is the company addressing the broader demand environment? - Management observed that case filings are increasing, and there are signs of improvement in the M&A market, contributing to a more favorable outlook [66][50]

CRA International (CRAI) came out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $1.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 48.18%. A quarter ago, it was expected that this consulting firm would post earnings of $1.38 per share when it actually produced earnings of $1.13, delivering a surprise of -18.12%.Over the last four quarters, t ...

Our performance could be af ected if employees and non-employee experts default on loans 16 In recent years, there has been significant litigation in the U.S. involving patents and other intellectual property rights. We could incur substantial costs in prosecuting or defending any intellectual property litigation, which could adversely affect our operating results and financial condition. Many businesses are experiencing the impact of increased medical costs as well as greater variability in ongoing costs. ...

| --- | --- | --- | --- | --- | |----------------------------------------------------------|-------|---------------------|-------|---------------------| | Assets | | December 30, 2023 | | December 31, 2022 | | Cash and cash equivalents | $ | 45,586 | $ | 31,447 | | Accounts receivable and unbilled services, net | | 199,556 | | 194,987 | | Other current assets | | 20,334 | | 22,426 | | Total current assets | | 265,476 | | 248,860 | | | | | | | | Property and equipment, net | | 38,176 | | 45,582 | | Goodwill ...

CRA International, Inc. (CRAI) is scheduled to report fourth-quarter 2023 results on Feb 29, before market open.CRAI has an unimpressive earnings surprise history, having outperformed the Zacks Consensus Estimate in only one of the preceding four quarters and missing in the other three, the average miss being 7.74%.Q4 ExpectationsThe Zacks Consensus Estimate for the company’s top line is pegged at $149.5 million, suggesting a 3.1% rise from the year-ago actual. Improvement is likely to have been driven by g ...

CRA International, Inc., which conducts business as Charles River Associates (CRAI) , has had an impressive run in the past month. The stock has gained 6.4%, outperforming the 2.6% rally of the industry it belongs to and the 1.4% rise of the Zacks S&P 500 composite.Reasons for the UpsideCharles River has a diversified business with service offerings across areas of functional expertise, client base and geographical regions. Being proficient in multiple industries helps the company meet varying client needs ...

CRA International, Inc. (NASDAQ:CRAI) Q3 2023 Earnings Conference Call November 2, 2023 10:00 AM ET Company Participants Paul Maleh - President, Chief Executive Officer Dan Mahoney - Chief Financial Officer Chad Holmes - Chief Corporate Development Officer Conference Call Participants Andrew Nicholas - William Blair Kevin Steinke - Barrington Research Marc Riddick - Sidoit Operator Good day, everyone, and welcome to Charles River Associates Third Quarter 2023 Conference Call. Please note that today's call i ...

1 2 Safe Harbor Disclaimer Statements included in this presentation which are not historical in nature, including those concerning the company's future business, operating and financial condition, are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements may include statements concerning our plans, objectives, goals, strategies, and future events, including, but not limited to, future revenues, results, growth, profitability, performance, a ...

Provision for Income Taxes. The income tax provision was $1.9 million and the effective tax rate ("ETR") was 18.3% for the third quarter of fiscal 2023 compared to $4.0 million and 25.3% for the third quarter of fiscal 2022. The ETR for the current fiscal quarter was lower than the prior year fiscal quarter primarily due to the release of a valuation allowance in a foreign jurisdiction, partially offset by a decrease in the tax benefit related to share-based compensation, an increase in nondeductible meals ...