Financial Data and Key Metrics Changes - The company reported total revenue of $77.9 million, up 1% year-over-year, with revenues before reimbursements at $76.2 million, also up 1% [13] - Adjusted earnings per share were $0.41, at the high end of quarterly guidance, compared to $0.39 in the prior year [19] - GAAP net income for the quarter was $3.1 million, or diluted earnings per share of $0.11, down from $8.7 million or $0.32 in the previous year [18] - Adjusted gross margin improved to 43.4% from 41.4% in the prior year, driven by higher margin GenAI consulting and implementation revenue [17] Business Line Data and Key Metrics Changes - The Global SMBT segment revenues were $43.4 million, with revenues before reimbursements at $42.6 million, a 6% increase year-over-year [13] - The Oracle Solutions segment saw revenues of $21.1 million, down 3% year-over-year, primarily due to the wind down of a large engagement [14] - The SAP Solutions segment reported revenues of $13.4 million, down 8% year-over-year, but expected to see strong demand due to increased software sales [15] Market Data and Key Metrics Changes - Approximately 23% of total revenues before reimbursements consist of recurring, multi-year, and subscription-based revenues [16] - Days Sales Outstanding (DSO) increased to 73 days from 66 days in the previous quarter, attributed to extended terms on large client engagements [20] Company Strategy and Development Direction - The company is focusing on GenAI enabled transformations, viewing it as a generational opportunity that will change consulting services delivery [6][24] - The acquisition of Leeway Hertz and the integration of ZBrain are expected to enhance the company's capabilities in GenAI solutions [25][27] - The company plans to leverage its AI Explorer platform to integrate GenAI capabilities across all offerings, enhancing its market position [29][30] Management's Comments on Operating Environment and Future Outlook - Management noted that while demand for digital transformation remains strong, economic concerns and tariff negotiations may impact client decision-making [23] - The company expects IT budgets to increase, with a focus on GenAI initiatives in high feasibility areas [24] - Management anticipates continued growth in GenAI revenue, with licensing expected to start in July [49] Other Important Information - The company repurchased 379,000 shares at an average price of $30.93, totaling approximately $11.7 million [21] - A second quarter dividend of $0.12 per share was declared, payable on July 7, 2025 [21] Q&A Session Summary Question: Can you elaborate on client interactions with AI Explorer and the pipeline for implementation projects? - Management highlighted unique capabilities in ideation and evaluation, leading to favorable client reactions and new engagements [35][36] Question: What is the current capacity for AI implementation and plans for scaling further? - Management indicated a 60% to 70% increase in capacity since acquisitions, with ongoing hiring to expand resources [39] Question: Update on the joint venture with ZBrain and any ARR contracts? - Management confirmed the addition of licensed clients to the ZBrain platform and expected to finalize the JV agreement soon [40] Question: How does economic disruption impact the business model? - Management acknowledged the need to address strategic cost reduction and efficiency in light of economic disruptions [44] Question: What is the expected impact of GenAI on 2025 results? - Management expects meaningful growth in GenAI revenue and licensing, with potential for accelerated growth through the JV [47][49] Question: What portion of AI revenue was implementation revenue in the quarter? - Management estimated a 50-50 split between implementation and discovery ideation revenue, with expectations for implementation to grow significantly [59] Question: Are you seeing cross-selling from GenAI consulting clients into other services? - Management confirmed cross-selling opportunities, integrating GenAI solutions into traditional digital transformation engagements [60]

Financial Data and Key Metrics Changes - Adjusted EPS grew over 22% to $1.43, supported by solid year-over-year margin expansion [7][21] - Adjusted net revenue rose over 3% in Q2, with adjusted EBITDA for Q2 at $287 million, representing an 8% year-over-year increase [11][20] - Backlog grew 20% to more than $22 billion, a new record [7][21] Business Line Data and Key Metrics Changes - PA Consulting's revenue growth inflected positively, reaching mid-single digits and driving double-digit operating profit growth [7] - Adjusted net revenue growth for Water and Environmental was 2% in Q2, with expectations for mid to high single-digit growth in the second half [22] - Life Sciences and Advanced Manufacturing adjusted net revenue grew approximately 6% in Q2, with strong demand in both sectors [23] Market Data and Key Metrics Changes - Approximately 9% of total revenue comes from U.S. Federal infrastructure and related services, primarily tied to Department of Defense engagements [10] - The Middle East saw strong growth, continuing at double digits [45] - FX was a headwind in Q2, but if rates remain stable, it could become a tailwind in Q3 [46] Company Strategy and Development Direction - The core pillar of the strategy is to redefine the asset lifecycle for clients, focusing on high-growth markets [13][18] - The company aims to deliver sustainable, profitable growth by providing differentiated, digitally enabled solutions [18] - Continued investment in PA Consulting is being considered to strengthen the partnership and capitalize on growth opportunities [90][91] Management's Comments on Operating Environment and Future Outlook - The geopolitical backdrop remains stable, with infrastructure and consulting services in high demand [9] - The company anticipates sequential revenue growth from Q2 to Q3, with Q3 net revenue expected to grow 5% to 7% year-on-year [31] - Management expressed confidence in the backlog and its ability to absorb impacts from legal reserves and FX challenges [39][40] Other Important Information - The company returned a record amount of capital to shareholders during Q2, with $351 million in share repurchases [28] - A dividend of $0.32 per share was declared, representing a 10% year-over-year growth [29] - The company is on track to potentially return more than 100% of adjusted free cash flow in fiscal year 2025, excluding the distribution of Momentum shares [30] Q&A Session Summary Question: Can you quantify the reserve for the JV matter and discuss customer spending visibility? - Management indicated that while the procurement cycle is extending, there are no broad cancellations or delays in execution [37] Question: What are the regional dynamics, particularly in PA and the UK? - PA is experiencing strong growth, particularly in defense and security, while the UK business is rebounding with solid performance in transportation and water [41][42] Question: How is the company addressing rising construction costs? - The company is working with clients on supply chain scenario planning and value engineering opportunities due to rising costs [66][68] Question: Is there potential for stimulus spending from government customers? - Some programs that were paused are now resuming, particularly in federal infrastructure [72] Question: What is the outlook for margins and utilization rates? - Utilization rates have improved and are on par with previous years, with expectations for margin improvements in Q3 and Q4 [55][107]

Core Viewpoint - Gartner reported quarterly earnings of $2.98 per share, exceeding the Zacks Consensus Estimate of $2.72 per share, and showing a year-over-year increase from $2.93 per share [1] - The company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - Gartner's revenues for the quarter ended March 2025 were $1.53 billion, matching the Zacks Consensus Estimate and reflecting a year-over-year increase from $1.47 billion [2] - The company has also exceeded consensus revenue estimates in the last four quarters [2] Stock Performance and Outlook - Gartner shares have declined approximately 11.9% since the beginning of the year, compared to a 3.9% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $3.28, with expected revenues of $1.66 billion, and for the current fiscal year, the estimate is $12.18 on revenues of $6.51 billion [7] Industry Context - The Consulting Services industry, to which Gartner belongs, is currently ranked in the top 30% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Gartner's stock performance [5]

Have you been paying attention to shares of Stantec (STN) ? Shares have been on the move with the stock up 6.2% over the past month. The stock hit a new 52-week high of $90.29 in the previous session. Stantec has gained 14.6% since the start of the year compared to the -1.2% move for the Zacks Business Services sector and the -6.5% return for the Zacks Consulting Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings ...

Core Insights - Exponent, Inc. reported first quarter results for fiscal year 2025, showing resilience in its diversified business model despite challenges in the consumer electronics sector [2][4][9] Financial Performance - Total revenues for Q1 2025 were approximately flat at $145.5 million compared to $144.9 million in Q1 2024, while revenues before reimbursements were $137.4 million, slightly up from $137.2 million [4] - Net income decreased to $26.7 million, or $0.52 per diluted share, down from $30.1 million, or $0.59 per diluted share in the same period last year [5][22] - EBITDA fell to $37.5 million, representing 27.3% of net revenues, compared to $40.1 million, or 29.2% of net revenues in Q1 2024 [6][27] Business Segments - The engineering and other scientific segment accounted for 84% of revenues before reimbursements, remaining flat year-over-year, driven by demand in transportation and utilities [7] - The environmental and health segment represented 16% of revenues before reimbursements, with a 2% increase attributed to higher engagements in the chemicals industry [8] Business Outlook - Exponent anticipates low-single-digit revenue growth for the full fiscal year 2025, maintaining its guidance despite facing headwinds in the second quarter [9][17] - The company is returning to a 52-week fiscal year in 2025, which may impact full-year comparisons due to the previous year's 53-week benefit [10]

分组1 - CRA International (CRAI) reported quarterly earnings of $2.22 per share, exceeding the Zacks Consensus Estimate of $1.93 per share, and up from $1.96 per share a year ago, representing an earnings surprise of 15.03% [1] - The company posted revenues of $181.85 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.46%, compared to year-ago revenues of $171.79 million [2] - CRA has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 13.4% since the beginning of the year, compared to the S&P 500's decline of 5.3% [3] - The current consensus EPS estimate for the coming quarter is $1.85 on revenues of $179.52 million, and for the current fiscal year, it is $7.75 on revenues of $717.66 million [7] - The Consulting Services industry is currently ranked in the top 11% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Dave Inc. (DAVE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.Dave Inc. is a member of the Business Services sector. This ...

The Business Services group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Fluent (FLNT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Business Services sector should help us answer this question.Fluent is one of 271 companies in the Business Services group. T ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Stantec (STN) , which belongs to the Zacks Consulting Services industry.When looking at the last two reports, this engineering firm has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 10.02%, on average, in the last two quarters.For the last reported quarter, Stantec came out with earnings of $0.79 per share vers ...

Investors interested in Consulting Services stocks are likely familiar with Information Services Group (III) and Equifax (EFX) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive ...