Overview
Preclinical drug developer's Q4 revenue slightly beat analyst expectations, helped by impact of currency translation
Adjusted EPS for Q4 beat analyst expectations
Company expects organic revenue growth to return in second half of 2026
Outlook
Charles River expects 2026 reported revenue to be flat to up 1.5%; non-GAAP EPS to be $10.70 to $11.20
Company anticipates lower RMS revenue due to declines in large model sales
Result Drivers
DSA AND MANUFACTURING IMPACT - Organic revenue decline driven by lower sales in DSA and Manufacturing segments
INTANGIBLE ASSET IMPAIRMENTS - Non-cash impairments in Biologics Solutions and Cell Solutions affected GAAP results
HIGHER COSTS IN DSA - Non-GAAP operating margin decreased due to higher study-related direct costs
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Beat* | $994.20 mln | $987 mln (11 Analysts) |
Q4 Adjusted EPS | Beat | $2.39 | $2.34 (13 Analysts) |
Q4 EPS | -$5.62 | ||
Q4 Adjusted Net Income | Beat | $118.80 mln | $116.30 mln (8 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy"
Wall Street's median 12-month price target for Charles River Laboratories International Inc is $220.00, about 38.8% above its February 17 closing price of $158.53
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago
Press Release: ID:nBw3RmmCTa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)