Charles River Associates (NASDAQ:CRAI) Announces Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Charles River Associates (NASDAQ:CRAI) posted its quarterly earnings data on Thursday. The business services provider reported $2.19 EPS for the quarter, beating the consensus estimate of $2.07 by $0.12, FiscalAI reports. Charles River Associates had a return on equity of 27.31% and a net margin of 6.20%. The business had revenue of $214.92 million for the quarter, compared to the consensus estimate of $199.04 million.

Here are the key takeaways from Charles River Associates’ conference call:

• CRA posted record third-quarter revenue of $214.9 million, up 15.6% year over year, with record net income, diluted EPS and EBITDA. Seven practices grew, and Forensic Services, Life Sciences, and Risk, Investigations & Analytics each delivered double-digit revenue growth.
• Management raised fiscal 2026 constant-currency revenue guidance to $830 million–$840 million, from $805 million–$820 million, and narrowed its non-GAAP EBITDA margin outlook to 12.2%–12.8%.
• Weekly project lead flow and new project originations each increased more than 20% year over year; consultant utilization reached 78%, and headcount grew 6.2%. Management said it remains comfortable with mid-single-digit headcount growth for the full year, rather than guiding to high-single-digit growth.
• CRA raised its quarterly dividend 17.5% to $0.67 per share, marking its tenth consecutive annual increase. The company returned $60.3 million to shareholders year to date through dividends and share repurchases.
• Global M&A activity fell 41% sequentially in the third quarter, and management said it is monitoring whether the slowdown is temporary or a broader trend. CRA also expects fiscal 2026 non-cash forgivable-loan amortization expense to rise by about $15 million year over year.

Charles River Associates Stock Performance

NASDAQ CRAI traded up $8.19 during trading on Thursday, hitting $202.94. 340,101 shares of the company’s stock traded hands, compared to its average volume of 110,429. The stock has a market capitalization of $1.27 billion, a price-to-earnings ratio of 27.02, a PEG ratio of 1.44 and a beta of 0.64. Charles River Associates has a 12-month low of $132.17 and a 12-month high of $227.29. The business has a 50 day moving average of $176.36 and a 200-day moving average of $166.14.

Charles River Associates Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Tuesday, November 24th will be paid a $0.67 dividend. The ex-dividend date is Tuesday, November 24th. This represents a $2.68 dividend on an annualized basis and a yield of 1.3%. This is an increase from Charles River Associates’s previous quarterly dividend of $0.57. Charles River Associates’s dividend payout ratio (DPR) is presently 30.36%.

Insiders Place Their Bets

In other Charles River Associates news, EVP Jonathan Yellin sold 2,250 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $173.25, for a total transaction of $389,812.50. Following the completion of the transaction, the executive vice president owned 11,153 shares in the company, valued at $1,932,257.25. This trade represents a 16.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.50% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Separately, Weiss Ratings raised Charles River Associates from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, September 25th. One analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $245.00.

About Charles River Associates

Charles River Associates, operating as CRA International, Inc, is a global consulting firm that provides economic, financial, and management consulting services. The company advises corporations, law firms, government agencies, and other organizations on complex business, legal, regulatory, and strategic matters.

CRA’s services include economic and financial analysis for litigation and regulatory proceedings, antitrust and competition consulting, corporate strategy, business performance improvement, and investigations.