Latest news with #CharlesRiverLaboratories
Yahoo
06-08-2025
- Business
- Yahoo
Charles River Laboratories (NYSE:CRL) Delivers Impressive Q2
Lab services company Charles River Laboratories (NYSE:CRL) reported Q2 CY2025 results beating Wall Street's revenue expectations , but sales were flat year on year at $1.03 billion. Its non-GAAP profit of $3.12 per share was 24.6% above analysts' consensus estimates. Is now the time to buy Charles River Laboratories? Find out in our full research report. Charles River Laboratories (CRL) Q2 CY2025 Highlights: Revenue: $1.03 billion vs analyst estimates of $986.9 million (flat year on year, 4.6% beat) Adjusted EPS: $3.12 vs analyst estimates of $2.50 (24.6% beat) Adjusted EBITDA: $236.7 million vs analyst estimates of $241.5 million (22.9% margin, 2% miss) Management raised its full-year Adjusted EPS guidance to $10.10 at the midpoint, a 5.8% increase Operating Margin: 9.7%, down from 14.8% in the same quarter last year Free Cash Flow Margin: 16.4%, up from 15% in the same quarter last year Organic Revenue was flat year on year (-3.2% in the same quarter last year) Market Capitalization: $8.23 billion James C. Foster, Chair, President and Chief Executive Officer, said, 'We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth. This progress was demonstrated in our solid second-quarter financial performance, driven principally by favorable results in our DSA segment.' Company Overview Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories (NYSE:CRL) provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Charles River Laboratories's 7.9% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Charles River Laboratories's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 1.8% over the last two years. We can dig further into the company's sales dynamics by analyzing its organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Charles River Laboratories's organic revenue averaged 1.6% year-on-year declines. Because this number aligns with its two-year revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Charles River Laboratories's $1.03 billion of revenue was flat year on year but beat Wall Street's estimates by 4.6%. Looking ahead, sell-side analysts expect revenue to decline by 2.2% over the next 12 months, similar to its two-year rate. This projection doesn't excite us and suggests its newer products and services will not catalyze better top-line performance yet. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. Operating Margin Charles River Laboratories has done a decent job managing its cost base over the last five years. The company has produced an average operating margin of 13.1%, higher than the broader healthcare sector. Analyzing the trend in its profitability, Charles River Laboratories's operating margin decreased by 12.9 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 12.4 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. In Q2, Charles River Laboratories generated an operating margin profit margin of 9.7%, down 5.1 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue. Earnings Per Share Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Charles River Laboratories's solid 8.5% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded. In Q2, Charles River Laboratories reported adjusted EPS at $3.12, up from $2.80 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Charles River Laboratories's full-year EPS of $10.71 to shrink by 7.2%. Key Takeaways from Charles River Laboratories's Q2 Results We were impressed by how significantly Charles River Laboratories blew past analysts' organic revenue expectations this quarter. We were also glad its EPS outperformed Wall Street's estimates. Zooming out, we think this was a good print with some key areas of upside. Investors were likely hoping for more, and shares traded down 1.5% to $165.01 immediately after reporting. So do we think Charles River Laboratories is an attractive buy at the current price? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
Charles River raises profit forecast on growing demand for drug development services
(Reuters) -Charles River Laboratories on Wednesday raised its annual profit forecast, betting on growing demand for its drug discovery and development services from drugmakers, sending its shares up more than 4% in premarket trading. The Wilmington, Massachusetts-based contract drug developer raised its 2025 adjusted profit forecast to $9.90 to $10.30 per share, compared with its previous projection of $9.30 to $9.80. Contract research organizations, which reported quarterly results over the last month, have all posted better-than-expected profit, reflecting a rebound in spending from pharmaceutical and biotech clients after a cautious stretch driven by tighter sector financing. Companies such as Danaher, Medpace "We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth," Charles River CEO James Foster said. The company now also expects its 2025 revenue to decline 0.5% to 2.5%, compared with its previous forecast of a 3.5% to 5.5% drop. Charles River's second-quarter revenue came in at $1.03 billion, surpassing Wall Street estimates of $985.1 million, according to data compiled by LSEG. The company reported quarterly profit of $3.12 per share on an adjusted basis, compared with analysts' average estimate of $2.50. Separately, Charles River also said that the U.S. Fish and Wildlife Service had cleared its non-human primate (NHP) shipments from late 2022 and early 2023 for legal entry into the United States. In 2023, the company suspended the shipment of NHPs from Cambodia as the Department of Justice and U.S. Fish and Wildlife Service investigated it over smuggling of wild long-tailed macaques to the U.S. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
06-08-2025
- Business
- Reuters
Charles River raises profit forecast on growing demand for drug development services
Aug 6 (Reuters) - Charles River Laboratories (CRL.N), opens new tab on Wednesday raised its annual profit forecast, betting on growing demand for its drug discovery and development services from drugmakers, sending its shares up more than 4% in premarket trading. The Wilmington, Massachusetts-based contract drug developer raised its 2025 adjusted profit forecast to $9.90 to $10.30 per share, compared with its previous projection of $9.30 to $9.80. Contract research organizations, which reported quarterly results over the last month, have all posted better-than-expected profit, reflecting a rebound in spending from pharmaceutical and biotech clients after a cautious stretch driven by tighter sector financing. Companies such as Danaher (DHR.N), opens new tab, Medpace <MEDP.O, IQVIA (IQV.N), opens new tab, ICON (ICLR.O), opens new tab and Thermo Fisher (TMO.N), opens new tab have posted strong results, owing to steady demand from the industry for tools and services used in the development of novel medicines. "We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth," Charles River CEO James Foster said. The company now also expects its 2025 revenue to decline 0.5% to 2.5%, compared with its previous forecast of a 3.5% to 5.5% drop. Charles River's second-quarter revenue came in at $1.03 billion, surpassing Wall Street estimates of $985.1 million, according to data compiled by LSEG. The company reported quarterly profit of $3.12 per share on an adjusted basis, compared with analysts' average estimate of $2.50. Separately, Charles River also said that the U.S. Fish and Wildlife Service had cleared its non-human primate (NHP) shipments from late 2022 and early 2023 for legal entry into the United States. In 2023, the company suspended the shipment of NHPs from Cambodia as the Department of Justice and U.S. Fish and Wildlife Service investigated it over smuggling of wild long-tailed macaques to the U.S.
Yahoo
05-08-2025
- Business
- Yahoo
Charles River Laboratories (CRL) Reports Earnings Tomorrow: What To Expect
Lab services company Charles River Laboratories (NYSE:CRL) will be announcing earnings results this Wednesday before market open. Here's what to look for. Charles River Laboratories beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $984.2 million, down 2.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' organic revenue estimates and a solid beat of analysts' full-year EPS guidance estimates. Is Charles River Laboratories a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Charles River Laboratories's revenue to decline 3.8% year on year to $986.9 million, in line with the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.50 per share. Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 11 analysts). Charles River Laboratories has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average. Looking at Charles River Laboratories's peers in the drug development inputs & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. West Pharmaceutical Services delivered year-on-year revenue growth of 9.2%, beating analysts' expectations by 5.6%, and Medpace reported revenues up 14.2%, topping estimates by 11.3%. West Pharmaceutical Services traded up 15.9% following the results while Medpace was also up 54.6%. Read our full analysis of West Pharmaceutical Services's results here and Medpace's results here. The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the drug development inputs & services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Charles River Laboratories is up 8.9% during the same time and is heading into earnings with an average analyst price target of $163.06 (compared to the current share price of $167.60). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
Yahoo
22-07-2025
- Business
- Yahoo
Why Are Charles River Laboratories (CRL) Shares Soaring Today
What Happened? Shares of lab services company Charles River Laboratories (NYSE:CRL) jumped 7.5% in the morning session after the company announced a plasmid DNA manufacturing agreement with Elly's Team, a parent-led foundation working to find a cure for a rare genetic disorder. The contract development and manufacturing organization (CDMO) agreement involved producing critical materials for a Phase I clinical trial targeting a neurodevelopmental disorder known as NEDAMSS. This partnership was part of Charles River's Cell and Gene Therapy Accelerator Program, which provides gene therapy CDMO capabilities and advisory services. The news highlighted the company's expanding role in the advanced therapies market, a high-growth area within the biopharmaceutical industry. By supporting the development of potentially curative treatments for ultra-rare diseases, Charles River showcased its specialized manufacturing capabilities, which likely bolstered investor confidence in its long-term growth prospects. Is now the time to buy Charles River Laboratories? Access our full analysis report here, it's free. What Is The Market Telling Us Charles River Laboratories's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 11 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada. The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions. Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses. Charles River Laboratories is down 11.6% since the beginning of the year, and at $161.39 per share, it is trading 34.2% below its 52-week high of $245.29 from July 2024. Investors who bought $1,000 worth of Charles River Laboratories's shares 5 years ago would now be looking at an investment worth $814.46. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
