CRAI is maintaining its financial projections for the full fiscal year of 2025. The company anticipates revenue to be between $715 million and $735 million, with a non-GAAP EBITDA margin projected to fall in the range of 12.0% to 13.0%. These estimates are based on constant currency comparisons to fiscal 2024 levels.
Despite the robust financial performance at the onset of the year, CRAI remains cautious. The company acknowledges that unpredictable global macroeconomic, business, and political climates could potentially impact its operations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for CRA International Inc (CRAI, Financial) is $235.50 with a high estimate of $247.00 and a low estimate of $224.00. The average target implies an upside of 47.18% from the current price of $160.01. More detailed estimate data can be found on the CRA International Inc (CRAI) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, CRA International Inc's (CRAI, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CRA International Inc (CRAI, Financial) in one year is $139.07, suggesting a downside of 13.09% from the current price of $160.01. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CRA International Inc (CRAI) Summary page.
CRAI Key Business Developments
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CRA International Inc (CRAI, Financial) achieved a 10.2% increase in revenue for fiscal 2024, marking the seventh consecutive year of record annual revenue.
- The company posted record profits with net income, earnings per diluted share, and EIA each growing faster than revenue, exceeding 20% year over year.
- Seven of CRAI's 11 practices grew their top lines in Q4, with energy, finance, and intellectual property delivering double-digit revenue growth.
- The company ended the quarter with a strong consulting headcount utilization of 78%, up from 73% in the previous year.
- CRAI's fiscal 2024 adjusted net cash flows from operations increased by 13% year over year to $92.5 million, demonstrating strong cash flow generation.
Negative Points
- Consultant headcount decreased by 5.8% compared to the previous year, indicating potential challenges in talent retention or recruitment.
- The effective tax rate for Q4 of fiscal 2024 increased to 30.9% from 26.1% in the previous year, impacting net income.
- Non-gap selling, general, and administrative expenses remained high at 15.9% of revenue for Q4, only slightly down from the previous year.
- The company faces ongoing challenges in matching supply and demand for services, particularly in legal and regulatory sectors.
- Uncertain global macroeconomic, business, and political conditions pose risks to CRAI's business outlook for fiscal 2025.
