Charles River Laboratories International, Inc. (NYSE:CRL) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Charles River Laboratories International, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 1.43% to $0.69 in the quarter versus EPS of $0.70 in the year-earlier quarter.
Revenue: Rose 1.83% to $291.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Charles River Laboratories International, Inc. reported adjusted EPS income of $0.69 per share. By that measure, the company missed the mean analyst estimate of $0.71. It missed the average revenue estimate of $294.54 million.
Quoting Management: James C. Foster, Chairman, President and Chief Executive Officer, said, “Our first-quarter operating results were affected by restrained spending on research models and associated services, primarily by large biopharmaceutical clients. We believe the slower than expected spending at the beginning of the year was principally due to these clients’ budget prioritization and the continued rationalization of their early-stage infrastructures and pipelines. As our clients further endeavor to enhance the efficiency of their research and development efforts, they are increasingly seeking more flexible outsourcing solutions for their essential, early-stage services. As the in vivo biology partner of choice, Charles River is uniquely positioned to benefit from this inflection point in biopharmaceutical outsourcing. We believe this outsourcing trend, coupled with our continued market share gains, was evident in the first-quarter performance of our Preclinical Services segment, which reported 6% constant-currency sales growth.”
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