The 10-second takeaway
For the quarter ended March 31 (Q1), CRA International whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.
Margins shrank across the board.
CRA International recorded revenue of $69.1 million. The three analysts polled by S&P Capital IQ wanted to see net sales of $78.8 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $78.6 million.
EPS came in at $0.09. The three earnings estimates compiled by S&P Capital IQ forecast $0.45 per share. GAAP EPS of $0.05 for Q1 were 88% lower than the prior-year quarter's $0.41 per share.
For the quarter, gross margin was 32.8%, 160 basis points worse than the prior-year quarter. Operating margin was 4.8%, 530 basis points worse than the prior-year quarter. Net margin was 0.8%, 480 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $82.9 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $316.6 million. The average EPS estimate is $1.70.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 57 members rating the stock outperform and five members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give CRA International a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CRA International is buy, with an average price target of $30.50.
Over the decades, small-cap stocks like CRA International have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add CRA International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.