CRA International Inc CRAI reported adjusted net income of $3.5 million or 37 cents per share in first-quarter fiscal 2015 (ended Apr 4, 2015) compared with $3.5 million or 35 cents per share in the prior-year quarter largely due to healthy top-line growth. The adjusted earnings marginally beat the Zacks Consensus Estimate by a penny. Post the earnings announcement, the market reacted negatively as investors probably expected healthy earnings beat and share prices decreased by about 1% to $28.92 on May 1.
The company reported GAAP net income of $2.8 million or 30 cents per share in the reported quarter versus $3.4 million or 34 cents per share in the year-ago quarter.
Quarter Highlights
Revenues for first-quarter 2015 increased to $78.0 million from $76.2 million in the prior-year quarter. The increase in revenues was driven by solid contributions throughout its portfolio and growth in the Antitrust & Competition Economics practice, Litigation and Regulatory as well as Management Consulting experiencing year-over-year growth. Company-wide utilization stood at 78% in the reported quarter.
Adjusted revenues for first-quarter 2015 increased to $77.2 million from $75.1 million in the prior-year quarter. Quarterly adjusted revenues beat the Zacks Consensus Estimate of $76.0 million.
Gross profit stood at $24.2 million in the reported quarter compared with $24.4 million in the year-ago quarter. Selling, general and administrative expenses stood at $18.1 million versus $17.2 million in the prior-year quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $11.3 million in the reported quarter compared with $11.9 million in the year-ago quarter.
Financial Position
At quarter-end 2015, cash and cash equivalents were $17.2 million compared with $48.2 million on Jan 3, 2015. Long-term liabilities stood at $12.1 million at the end of the quarter versus $11.9 million on Jan 3, 2015.
The company used $24.2 million in operating activities versus $14.5 million of cash utilization in the prior-year period.
Share Repurchase
During the first quarter, the company repurchased approximately 145,000 shares for $4.5 million.
Outlook
CRA International reaffirmed its full-year 2015 non-GAAP revenue guidance in the range of $312 million to $320 million. Non-GAAP adjusted EBITDA margin is expected to be in the range of 16.3%–16.7%.
CRA International is encouraged by the strong momentum in its operations. Going forward, the company is well positioned to deliver profits through organic and inorganic growth and aims to deepen its client relationships and create new revenue generating opportunities via natural extension of its current offerings.
CRA International currently has a Zacks Rank #2 (Buy). Stocks that look promising in the sector and are worth a look now include CoreLogic, Inc. CLGX, NV5 Holdings, Inc NVEE and Stantec Inc STN, each carrying a Zacks Rank #1 (Strong Buy).
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