CRA (CRAI) reports Q3: everything you need to know ahead of earnings

What happened

CRA International is scheduled to report earnings before the market opens Thursday. Analysts expect this quarter’s revenue to grow 7.1% year on year, slower than the 10.8% growth recorded in the same quarter last year. Last quarter, CRA reported revenue of $210.8 million, up 12.8%, and narrowly exceeded analysts’ earnings-per-share estimates.

Confirmed

Global impact / market context

Slower expected revenue growth may point to less momentum in CRA’s consulting business, which could affect investor expectations for future sales and profit. The earnings report will show whether demand and results are keeping pace with current forecasts, but the article does not establish that growth has weakened.

Analyst inference

Analysts generally reaffirmed their estimates over the past 30 days, indicating expectations have not shifted much ahead of the report. In the consulting segment, FTI Consulting reported 5.9% revenue growth and Huron 11.4%, both in line with analysts’ estimates.

Confirmed

What to watch

1. Check CRA’s reported revenue against the expected 7.1% year-on-year growth; the result will indicate whether sales are tracking the slower pace analysts forecast. Analyst inference
2. Compare earnings per share with analysts’ estimates, since CRA narrowly beat those estimates last quarter and another result could change views of profit growth. Analyst inference
3. Watch management’s explanation of demand and outlook; comments may clarify whether revenue growth is slowing temporarily or whether forecasts need revision. Analyst inference

Evidence

• stockstory.org