The upcoming report from Charles River Laboratories (CRL) is expected to reveal quarterly earnings of $2.33 per share, indicating a decline of 12.4% compared to the year-ago period. Analysts forecast revenues of $985.92 million, representing a decline of 1.7% year over year.The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timef ...

Core Insights - Charles River Laboratories International, Inc. (NYSE:CRL) is recognized as one of the top mid-cap AI stocks to invest in according to hedge funds, with a price target increase from $197 to $251 by TD Cowen, indicating a potential upside of 38.49% [1] - The firm anticipates solid quarterly results for Q4 and believes that the 2026 guidance could clarify operating conditions for investors [2] - A new gene therapy collaboration with Gazi University has been announced, focusing on advancing research for Hyperphosphatemic tumoral calcinosis (HTC) [3][4] Company Developments - The collaboration with Gazi University involves providing plasmid DNA for AAV production and support for in vitro efficacy studies, aimed at early-stage gene therapy programs [3][4] - Kerstin Dolph, Corporate Senior Vice President, emphasized the importance of this collaboration in transforming innovative concepts into real-world therapies [4] - Charles River Laboratories operates in various segments including Discovery and Safety Assessment, Research Models and Services, and Manufacturing Solutions, and has a global presence [4]

Key Takeaways CRL is set to report Q4 results on Feb. 18, with revenues and EPS expected to decline year over year. Charles River's RMS may see modest growth, aided by Noveprim and GEMS momentum. CRL's DSA revenues may fall on biotech budget pressure, while Manufacturing shows steady gains. Charles River Laboratories International, Inc. (CRL) is scheduled to report fourth-quarter 2025 results on Feb. 18, before the market opens.In the last reported quarter, the company’s adjusted earnings per share (EPS) of ...

Core Viewpoint - Charles River Laboratories International, Inc. is set to release its fourth-quarter and full-year 2025 financial results along with guidance for 2026 on February 18, before the market opens [1] Group 1 - A conference call to discuss the financial results and guidance will take place on February 18 at 8:30 a.m. ET [1] - Investors can access a live webcast of the conference call through the Investor Relations section of the company's website [2] - A replay of the conference call will also be available on the same website [2] Group 2 - Charles River Laboratories provides essential products and services to pharmaceutical and biotechnology companies, government agencies, and academic institutions globally [3] - The company focuses on accelerating research and drug development efforts for its clients [3] - Charles River's dedicated employees aim to improve and expedite the discovery, early-stage development, and safe manufacture of new therapies [3]

Core Viewpoint - Kahn Swick & Foti, LLC has initiated an investigation into Charles River Laboratories International, Inc. following legal issues related to the company's supply chain practices and securities disclosures [1][3]. Group 1: Legal Issues - In February 2023, Charles River disclosed it received a subpoena from the U.S. Department of Justice regarding an investigation into the illegal importation of non-human primates, leading to a voluntary suspension of shipments from Cambodia [2]. - The suspension is expected to negatively impact the company's earnings for the year, reducing revenue growth by 200 to 400 basis points [2]. - Following the subpoena, Charles River and certain executives were sued in a securities class action lawsuit for failing to disclose material information, which is still ongoing [3]. Group 2: Investigation Focus - KSF's investigation is centered on whether Charles River's officers and/or directors breached their fiduciary duties to shareholders or violated state or federal laws [3].

Core Insights - Charles River Laboratories International, Inc. (CRL) is valued at a market cap of $10.8 billion and operates as a global contract research organization (CRO) supporting drug discovery and development for various clients [1] Financial Performance - CRL is expected to announce its fiscal Q4 earnings for 2025 soon, with analysts predicting a profit of $2.33 per share, which represents a 12.4% decrease from $2.66 per share in the same quarter last year [2] - For fiscal 2025, analysts forecast CRL to report a profit of $10.22 per share, down 1% from $10.32 per share in fiscal 2024, but expect a rebound with a growth of 4.9% year over year to $10.72 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, CRL's stock has increased by 32.5%, outperforming the S&P 500 Index's 16.9% increase and the Health Care Select Sector SPDR Fund's 10.4% rise [4] - On December 22, shares of CRL rose about 3% following an upgrade to "Buy" by BofA Securities and the closure of an SEC investigation into the company's primate sourcing practices without enforcement action, alleviating investor concerns [5] Analyst Ratings - Wall Street analysts maintain a moderately optimistic outlook on CRL's stock, with an overall "Moderate Buy" rating; among 16 analysts, 11 recommend "Strong Buy" and five suggest "Hold" [6] - The stock currently trades above the mean price target of $209.57, with a Street-high target of $260 indicating an upside potential of 18.3% from current market prices [6]

Acquisitions - Charles River announced the strategic acquisition of K.F. (Cambodia) Ltd. for approximately $510 million, expected to complete in Q1 2026, to self-supply most annual NHP needs[4] - The company will also acquire the remaining 79% of PathoQuest for about €51.60 million (approximately $60 million), expected to contribute $15-20 million in revenue in 2026[4] Supply Chain and Technology Enhancement - The acquisition of K.F. will aid in vertical integration amid global NHP resource constraints, enhancing DSA business stability and cost control[5] - PathoQuest's NGS quality control technology will improve NAMs and bioproduct quality control, increasing the proportion of high-value services[5] DSA Demand Recovery - DSA net book-to-bill ratio reached 1.1x in Q4 2025, up from 0.8x in Q2-Q3 2025, indicating a recovery driven by small and medium biotech demand and growth in large pharma orders[6] - This recovery signals a gradual bottoming out of preclinical demand[6] 2026 Performance Outlook - The company is cautiously optimistic for 2026, expecting organic revenue growth to be at least flat, with DSA business resuming organic growth in H2 2026[6] - Forex is expected to contribute 100-150 basis points to revenue growth[6] Investment Recommendations - Long-term positive outlook on pharmaceutical growth, with a focus on domestic companies such as WuXi AppTec and Pharmaron[7] - Suggested companies to watch include WuXi AppTec, Pharmaron, JOINN Laboratories, and others[7] Risk Factors - Risks include a weaker-than-expected global biotech financing environment and challenges in NHP supply chain recovery[7] - Potential risks related to acquisition integration and project execution[7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Charles River Laboratories (CRL) - CRL currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][4] - The stock has shown significant price performance, with a 9.13% increase over the past week and a 10.41% increase over the past month, outperforming the Zacks Medical Services industry, which rose 2.52% and 1.48% respectively [6] - Over the past quarter, CRL shares increased by 15.72%, and over the last year, they gained 24.43%, compared to the S&P 500's increases of 4.57% and 19.92% [7] Trading Volume - CRL's average 20-day trading volume is 605,064 shares, which serves as a baseline for price-to-volume analysis; a rising stock with above-average volume is generally seen as bullish [8] Earnings Outlook - Recent earnings estimate revisions for CRL have been positive, with 2 estimates moving higher for the current fiscal year, raising the consensus estimate from $10.21 to $10.22 [10] - For the next fiscal year, 3 estimates have increased with no downward revisions, indicating a positive trend in earnings expectations [10] Conclusion - Given the positive momentum indicators and earnings outlook, CRL is positioned as a strong buy candidate for investors seeking short-term gains [12]

Company Overview - Charles River Labs is a nonclinical Contract Research Organization (CRO) that supports clients from early drug discovery through to manufacturing [2] - The company employs 20,000 individuals, with 2,500 holding advanced degrees [2] - 70% of the company's revenue is derived from the pharmaceutical industry [2] Market Position - Charles River Labs holds the 1 market share position in several business segments, including research models, safety assessment, and microbial services [3] - The company has contributed to the development of at least 80% of all drugs approved by the FDA in the last five years [3] Revenue Breakdown - The company's revenue distribution is as follows: 66% from North America, 27% from Europe, and 7% from the rest of the world [4] - The client base consists of 40% to 45% biotech companies, 25% to 30% global pharmaceutical companies, 8% academic institutions, and the remainder from other sectors including CROs, animal health, life sciences, CDMOs, and consumer products [4] Market Size - The total market size for the segments in which Charles River Labs operates is approximately $25 billion [3]

Summary of Charles River Laboratories FY Conference Call Company Overview - **Company**: Charles River Laboratories (NYSE: CRL) - **Industry**: Non-clinical Contract Research Organization (CRO) - **Employees**: 20,000, with 2,500 holding advanced degrees - **Revenue**: Approximately $4 billion, with 70% derived from the pharmaceutical industry - **Market Size**: The total addressable market is about $25 billion [3][4] Revenue Breakdown - **Geographical Distribution**: - North America: 66% - Europe: 27% - Rest of the World: 7% [4] - **Client Base**: - 40%-45% biotech - 25%-30% global pharmaceutical companies - 80% academic institutions [4] Business Segments - **Research Model Segment (RMS)**: - Accounts for over 20% of revenue - Focus on genetically engineered models and basic R&D space [5][6] - **Discovery and Safety Assessment (DSA)**: - Largest segment at 60% of revenue - Focus on oncology and CNS, with a strong emphasis on integrated studies [6][7] - **Manufacturing Solutions**: - Comprises microbial solutions, biologics testing, and cell and gene therapy [8][9] Financial Performance - **Operating Margin**: Increased despite declining sales over the last 12 months [4] - **Free Cash Flow**: Significant improvement noted [4] - **Cost Savings**: Anticipated annualized cumulative cost savings of $300 million [12] Strategic Initiatives - **M&A Activity**: - Focus on expanding portfolio through acquisitions, with $4.5 billion invested since 2012 [17] - Recent acquisitions include a Cambodian NHP supplier for over $500 million, expected to be EPS accretive by $0.25 this year and $0.60 next year [14][39] - **Divestitures**: - Plans to divest non-performing businesses representing about 7% of revenue [12][40] - **Capital Allocation**: - Emphasis on disciplined capital deployment, including stock buybacks and debt reduction [13][17] Market Trends and Demand - **Biotech Funding**: - Notable improvement in funding, particularly for small and mid-sized biotech clients, leading to increased demand [10][21] - **Book to Bill Ratio**: - Preliminary DSA net book to bill ratio of 1.1 times, indicating positive demand trends [23][27] - **Demand Recovery**: - Signs of recovery in demand from pharmaceutical clients, with R&D budgets normalizing [21][22] Non-Animal Technologies (NAMs) - **Focus on NAMs**: - Significant investment in non-animal technologies, with a dedicated board committee [11][18] - Anticipated to improve discovery processes and reduce reliance on traditional animal testing [19][20] Future Outlook - **2026 Guidance**: - Expectation for organic revenue growth to be at least flat, with a focus on maintaining a book to bill ratio above one [31][32] - **Capacity Utilization**: - Current capacity is well utilized but not optimally; demand needs to increase for better utilization [33] Leadership Transition - **CEO Retirement**: - Jim Foster will retire in May after over 30 years as CEO, with a planned succession to the current COO [25][42] Conclusion - Charles River Laboratories is positioned for growth with a strong focus on M&A, cost management, and adapting to market demands, particularly in the biotech sector. The company is also making strides in non-animal technologies, which could reshape its operational landscape in the coming years.