CRA International reported modest third quarter 2014 results as
adjusted earnings were in-line with the Zacks Consensus Estimate.
The company benefited from broad-based demand and positive
contributions from Litigation/Regulatory and Management Consulting
segments. Additionally, the company's growth initiatives and solid
cash balance augur well for the long term. Going forward, the
company aims to achieve profitable growth both organically and
through strategic hires. However, we remain concerned about the
ongoing cautious spending by clients, stiff competition and
currency fluctuations. We are changing our long-term recommendation
on the stock from Outperform to Neutral as we expect it to perform
in line with the broader market.
Founded in 1965 and headquartered in Boston, Massachusetts, CRA
International Inc., formerly known as Charles River Associates,
provides legal, regulatory, business consulting and other expert
services through its specialized consultants across the globe. The
company's economists, business professionals, engineers and other
industry leaders provide original authoritative advice to support
various customer activities. These include high-priority matters
such as multibillion-dollar mergers and acquisitions (M&A), new
product introductions, major capital investment decisions and
complex litigation, the results of which often have significant
consequences for the parties involved.
CRA International's consultants blend economic and financial
analysis, with expertise in litigation and regulatory support,
business strategy and planning, market and demand forecasting,
policy analysis, and engineering and technology strategy. The
company functions through a global network of coordinated offices
across North America, Europe, the Middle East, and Asia.
In April 2005, CRA International acquired Lee & Allen, a
provider of forensic accounting and dispute resolution services in
the U.K., in order to expand in Europe, as well as in South Africa.
This was followed by the acquisition of Lexecon Ltd. in June 2005.
Lexecon is a provider of competition economics consulting in
Europe, with offices in U.K., Germany, and Belgium. In May 2006,
the company completed its domestic transfer pricing practice via
the acquisition of certain assets of Ballentine Barbera Group. In
June 2009, the company acquired Marakon Associates Inc., a leading
strategy consulting firm renowned for its revolutionary value-based
management. In an attempt to further expand its presence in the
Middle East, the company opened its second office in Riyadh, Saudi
Arabia in April 2010 after opening the first one in Bahrain in
CRA International competes with a broad range of public and
private consulting firms. The closest publicly traded peers to CRA
International include FTI Consulting, Huron Consulting Group, LECG
Corporation and Navigant Consulting.
CRA International Inc. (CRAI): Read the Full
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