Exponent, Inc. (NASDAQ: EXPO) stock fell over 2.4% on 18th October 2018 (Source: Google Finance) on lower than expected performance. The company reported total revenues in the quarter grew 9% to $95.3 million, as compared to $87.6 million in the same quarter of 2017. Revenues before reimbursements increased 8% to $88.7 million as compared to $82.4 million in the same period last year.
Net income was $17.5 million, or $0.32 per diluted share, as compared to $14.6 million, or $0.27 per diluted share, in the same period of 2017. For comparison, Exponent’s tax rate decreased to 27.2% in the third quarter of 2018, as compared to 33.5% in the same period last year, due to the new Tax Legislation. EBITDA increased 7% to $24.8 million, as compared to $23.2 million in the same quarter of 2017.
For the first nine months of 2018, total revenues increased 11% to $287.4 million, as compared to $259.5 million in the same period of 2017. Revenues before reimbursements increased 9% to $269.4 million, as compared to $247.0 million in the same period one year ago. Net income was $56.2 million, or $1.04 per diluted share, as compared to $45.0 million, or $0.83 per diluted share, in the same period of 2017. As a reminder, in the first quarter of 2016. The tax benefit realized in the first nine months of 2018 was $4.2 million, or $0.08 per diluted share, as compared to $6.5 million or $0.12 per diluted share in same period last year.
Inclusive of the tax benefit for share-based awards, Exponent’s consolidated tax rate was 21.2% in the first nine months of 2018, as compared to 27.2% for the same period last year. For comparison purposes, excluding the tax benefit for share-based awards, Exponent’s tax rate decreased to 27.0% year to date, as compared to 37.7% in same period last year, due to the new Tax Legislation.
EBITDA in the first nine months of 2018 increased 13% to $74.3 million, as compared to $65.7 million in the same period one year ago. Year to date, Exponent paid $20.5 million in dividends and closed the period with $202.4 million in cash, cash equivalents and short-term investments. In a separate press release today, Exponent announced a $0.13 quarterly dividend payment and reiterated its intent to continue to pay quarterly dividends.