CRA Q3 revenue beats estimates, raises guidance

Reuters
Oct 30
CRA Q3 revenue beats estimates, raises guidance

Overview

  • CRA fiscal Q3 revenue grows 10.8% yr/yr, beating analyst expectations

  • Adjusted EPS for fiscal Q3 beats consensus, rising 16.4% yr/yr

  • Company raises full-year revenue guidance, increases quarterly dividend by 16%

Outlook

  • CRA raises full-year revenue guidance to $740.0 mln-$748.0 mln

  • Company increases lower end of profit guidance for fiscal 2025

  • CRA expects non-GAAP EBITDA margin of 12.6%-13.0% for 2025

Result Drivers

  • PRACTICE GROWTH - Antitrust & Competition Economics, Energy, Finance, and Intellectual Property practices posted double-digit revenue growth

  • GEOGRAPHIC EXPANSION - International operations revenue grew 30.3% yr/yr, while North American operations increased by 6.8%

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$185.90 mln

$179.42 mln (3 Analysts)

Q3 Adjusted EPS

Beat

$2.06

$1.80 (3 Analysts)

Q3 EPS

$1.73

Q3 Adjusted Net Income

$13.70 mln

Q3 Net Income

$11.50 mln

Q3 Adjusted EBITDA

$24.40 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for CRA International Inc is $244.00, about 27% above its October 29 closing price of $178.20

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nBw8Dfr4La

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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