Stock Analysis

CRA International, Inc. Just Recorded A 5.7% EPS Beat: Here's What Analysts Are Forecasting Next

NasdaqGS:CRAI
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As you might know, CRA International, Inc. (NASDAQ:CRAI) recently reported its quarterly numbers. The result was positive overall - although revenues of US$168m were in line with what the analysts predicted, CRA International surprised by delivering a statutory profit of US$1.67 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CRA International after the latest results.

See our latest analysis for CRA International

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NasdaqGS:CRAI Earnings and Revenue Growth November 3rd 2024

Taking into account the latest results, the most recent consensus for CRA International from three analysts is for revenues of US$701.1m in 2025. If met, it would imply a reasonable 4.2% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 20% to US$7.59. In the lead-up to this report, the analysts had been modelling revenues of US$701.7m and earnings per share (EPS) of US$7.56 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$202, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic CRA International analyst has a price target of US$210 per share, while the most pessimistic values it at US$194. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CRA International's past performance and to peers in the same industry. We would highlight that CRA International's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 7.5% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that CRA International is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CRA International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$202, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on CRA International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CRA International going out to 2026, and you can see them free on our platform here..

You can also view our analysis of CRA International's balance sheet, and whether we think CRA International is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.