Barrington has increased its price target for Charles River Associates (CRAI, Financial) to $228, up from $224, maintaining an Outperform rating on the stock. This adjustment follows the company's strong first-quarter results for 2025, which surpassed expectations and confirmed its guidance for the year. The firm highlighted improved demand across February and March after a slow start in January.
During the full quarter, Charles River Associates experienced a 5% year-over-year increase in new project lead flow, and new project originations grew by 3% compared to the previous year. These encouraging figures reflect the company's robust performance and promising outlook for the future.
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 25.27% from the current price of $188.00. 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 $157.92, suggesting a downside of 16% from the current price of $187.995. 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: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CRA International Inc (CRAI, Financial) delivered record financial results with a 5.9% year-over-year revenue increase to $181.9 million, marking the highest quarterly revenue in the company's history.
- Five practices, including energy, finance, intellectual property, and life sciences, posted double-digit revenue growth, with the antitrust and competition economics practice achieving a new high for quarterly revenue.
- CRA's international operations led with nearly 20% year-over-year revenue growth, showcasing successful geographic expansion.
- Non-GAAP net income, earnings per diluted share, and EBITDA increased by 11%, 13%, and 11% respectively, setting new quarterly records for the company.
- Consultant utilization improved to 76% year-over-year, supported by a replenished sales pipeline and increased project lead flow.
Negative Points
- Consultant headcount decreased by 5% compared to the first quarter of 2024, indicating potential challenges in workforce management.
- Non-GAAP selling, general, and administrative expenses increased slightly to 15.9% of revenue from 15.6% a year ago, suggesting rising operational costs.
- The effective tax rate on a non-GAAP basis was 27.2%, slightly lower than the previous year's 28.0%, but still a significant expense.
- Days Sales Outstanding (DSO) increased to 107 days from 106 days, indicating potential delays in cash collection.
- The company incurred a restructuring charge affecting approximately 15 individuals, highlighting ongoing efforts to optimize the service portfolio.
