CRA International Q4 revenue growth beats estimates, EPS falls short

Overview

• Consulting firm's Q4 revenue rose 11.6%, beating analyst expectations

• Adjusted EPS for Q4 missed analyst estimates

• Company expanded share repurchase program by $55 mln

Outlook

• CRA expects fiscal 2026 revenue between $785 mln and $805 mln on a constant currency basis

• Company anticipates non-GAAP EBITDA margin of 12.0% to 13.0% for fiscal 2026

• CRA expects currency effects to reduce fiscal 2026 revenue by $5 mln

Result Drivers

• CONSULTING PRACTICES - Revenue growth driven by strong performance in Antitrust & Competition Economics, Energy, Forensic Services, and Labor & Employment practices

• GEOGRAPHIC EXPANSION - International operations supported revenue growth with a 21.9% increase

• NET INCOME DECLINE - Despite revenue growth, net income decreased 12% year over year

Company press release: ID:nBw88vHQ7a

Key Details

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 $252.50, about 57.6% above its February 25 closing price of $160.26

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 22 three months ago

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