Charles River Associates (NASDAQ:CRAI) Releases Quarterly Earnings Results, Misses Estimates By $0.03 EPS

Charles River Associates (NASDAQ:CRAI) announced its quarterly earnings results on Thursday. The business services provider reported $1.99 earnings per share for the quarter, missing the consensus estimate of $2.02 by ($0.03), FiscalAI reports. Charles River Associates had a net margin of 6.22% and a return on equity of 25.83%. The business had revenue of $200.98 million during the quarter, compared to analysts’ expectations of $193.81 million.

Here are the key takeaways from Charles River Associates’ conference call:

• Company reported a record quarterly revenue of $201.0 million, up 10.5% year-over-year, with broad-based growth across eight practices and international revenue rising 20.3%.
• Demand and operations strengthened — consultant headcount rose 2.5% to 971, utilization improved to 77%, and average weekly project lead flow and new project originations set quarterly records.
• Reported non-GAAP EBITDA was $23.2 million (11.5% margin), but results include $13.8 million of non-cash forgivable loan amortization (up 53% YoY), which materially reduced reported profitability.
• Capital deployment was active — $62.3 million spent on talent, $25.3 million returned to shareholders (dividends and buybacks), the credit facility was increased by $50 million to $300 million, and quarter-end net debt was $159.5 million with $86.7 million total liquidity.

Charles River Associates Price Performance

CRAI stock traded up $0.46 during trading on Friday, hitting $139.58. The stock had a trading volume of 122,453 shares, compared to its average volume of 182,809. Charles River Associates has a twelve month low of $134.47 and a twelve month high of $227.29. The stock has a market capitalization of $901.69 million, a P/E ratio of 19.39, a PEG ratio of 1.03 and a beta of 0.75. The company’s 50-day moving average price is $161.81 and its two-hundred day moving average price is $180.00.

Charles River Associates Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Investors of record on Tuesday, May 26th will be issued a $0.57 dividend. This represents a $2.28 annualized dividend and a yield of 1.6%. The ex-dividend date is Tuesday, May 26th. Charles River Associates’s payout ratio is presently 31.67%.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the company. Barrington Research restated an “outperform” rating and issued a $245.00 price target on shares of Charles River Associates in a research note on Monday, March 2nd. Weiss Ratings cut Charles River Associates from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, April 24th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat.com, Charles River Associates currently has a consensus rating of “Moderate Buy” and a consensus target price of $245.00.

Insider Transactions at Charles River Associates

In related news, EVP Jonathan D. Yellin sold 2,250 shares of Charles River Associates stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $182.27, for a total value of $410,107.50. Following the sale, the executive vice president directly owned 14,046 shares in the company, valued at approximately $2,560,164.42. The trade was a 13.81% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 4.50% of the company’s stock.

Institutional Investors Weigh In On Charles River Associates

Several institutional investors have recently bought and sold shares of CRAI. Russell Investments Group Ltd. boosted its holdings in shares of Charles River Associates by 8.2% during the 4th quarter. Russell Investments Group Ltd. now owns 4,180 shares of the business services provider’s stock worth $839,000 after purchasing an additional 318 shares during the last quarter. Kennedy Capital Management LLC boosted its holdings in shares of Charles River Associates by 1.2% during the 4th quarter. Kennedy Capital Management LLC now owns 6,489 shares of the business services provider’s stock worth $1,302,000 after purchasing an additional 79 shares during the last quarter. Entropy Technologies LP acquired a new position in shares of Charles River Associates during the 4th quarter worth approximately $401,000. Arkadios Wealth Advisors boosted its holdings in shares of Charles River Associates by 3.1% during the 4th quarter. Arkadios Wealth Advisors now owns 4,388 shares of the business services provider’s stock worth $881,000 after purchasing an additional 134 shares during the last quarter. Finally, New York State Common Retirement Fund boosted its holdings in shares of Charles River Associates by 25.0% during the 4th quarter. New York State Common Retirement Fund now owns 7,495 shares of the business services provider’s stock worth $1,504,000 after purchasing an additional 1,500 shares during the last quarter. 84.13% of the stock is currently owned by institutional investors and hedge funds.

About Charles River Associates

Charles River Associates (NASDAQ: CRAI) is a global consulting firm specializing in economic, financial and management advisory services. Founded in 1965 and headquartered in Boston, Massachusetts, the company provides expert analysis to support litigation, regulatory proceedings, and strategic decision-making. Its multidisciplinary teams draw on academic rigor and industry experience to deliver quantitative and qualitative insights tailored to clients’ needs.

The firm’s service offerings include competition economics, antitrust and merger analysis, intellectual property valuation and damages assessment, and risk management.