Charles River Associates (NASDAQ: CRAI) reported Q1 EPS of $0.33, $0.01 worse than the analyst estimate of $0.34. Revenue for the quarter came in at $88.2 million versus the consensus estimate of $84.35 million.

GUIDANCE:

Charles River Associates sees FY2017 revenue of $350-360 million, versus the consensus of $350 million

Outlook and Financial Guidance

“We are encouraged by our recent acquisition of C1 and the positive trends we are seeing in project originations across the firm. For fiscal 2017, on a constant currency basis relative to fiscal 2016, we are reaffirming our previous guidance of non-GAAP revenue in the range of $350 million to $360 million, and non-GAAP Adjusted EBITDA margin in the range of 15.8% to 16.6%. This guidanceincludes the expected contributions from C1 Consulting. While we are pleased with our performance in the first quarter of fiscal 2017, we remain mindful that uncertainties around global economic conditions and short-term challenges arising from the integration of newly hired consultants could affect our business,” Maleh concluded.

Key First-Quarter Fiscal 2017 Highlights

• GAAP and non-GAAP revenue grew 9.0% and 10.0%, respectively, year over year to $88.2 million. On a constant currency basis relative to the first quarter of fiscal 2016 (“constant currency basis”), GAAP and non-GAAP revenue would have increased by $2.1 million, resulting in year-over-year revenue growth of 11.6% and 12.6%, respectively.
• Net income increased 17.7% year over year to $2.9 million, or 3.2% of revenue, compared with $2.4 million, or 3.0% of revenue, in the first quarter of fiscal 2016; non-GAAP net income increased 8.4% year over year to $2.9 million. On a constant currency basis, GAAP and non-GAAP net income would have increased by $0.4 million, resulting in year-over-year GAAP and non-GAAP net income growth of 37.5% and 22.2%, respectively.
• Earnings per diluted share increased 22.2% year over year to $0.33; non-GAAP earnings per diluted share increased 10.0% year over year to $0.33. On a constant currency basis, GAAP and non-GAAP earnings per diluted share would have increased by approximately $0.05 per diluted share to $0.38, resulting in year-over-year GAAP and non-GAAP earnings per diluted share growth of 40.7% and 26.7%, respectively.
• Non-GAAP Adjusted EBITDA grew 8.9% year over year to $13.8 million, or 15.7% of non-GAAP revenue, compared with 15.8% of non-GAAP revenue for the first quarter of fiscal 2016. On a constant currency basis, non-GAAP Adjusted EBITDA would have increased by $0.6 million to 15.9% of non-GAAP revenue, resulting in year-over-year non-GAAP Adjusted EBITDA growth of 13.4%.
• First-quarter fiscal 2017 utilization equaled 72% as headcount increased by 128, or 26%, year over year, which includes 84 consultants who joined CRA as part of the C1 transaction.
• On January 31, 2017, CRA announced the acquisition of substantially all of the assets of C1 Consulting, a life sciences strategy consulting firm that helps pharmaceutical and biotech clients maximize their business potential through the development of highly tailored commercialization strategies based on advanced analytics, customer insights, and therapy area expertise.

For earnings history and earnings-related data on Charles River Associates (CRAI) click here.