Revenue Performance - Third-quarter revenue for Charles River Laboratories was $1.00 billion, a decrease of 0.5% from $1.01 billion in Q3 2024[1] - Organic revenue declined by 1.6%, with lower revenue in the Discovery and Safety Assessment (DSA) and Manufacturing Solutions segments, partially offset by growth in the Research Models and Services (RMS) segment[2] - Total revenue for the three months ended September 27, 2025, was $1,004,852,000, a slight decrease of 0.1% compared to $1,009,763,000 for the same period in 2024[26] - Reported revenue growth for the total company in Q3 2025 was a decrease of 0.5%, with the RMS segment growing by 7.9% while the DSA and MS segments declined by 2.3% and 3.1%, respectively[36] - For the nine months ended September 27, 2025, reported revenue growth was a decrease of 0.9%, with the RMS segment growing by 2.4% and the DSA and MS segments declining by 2.0% and 0.8%, respectively[36] Income and Earnings - GAAP net income for Q3 2025 was $54.4 million, or $1.10 per diluted share, down from $68.7 million, or $1.33 per diluted share in Q3 2024[3] - Non-GAAP net income decreased by 10.0% to $120.3 million, with diluted earnings per share of $2.43, a decrease of 6.2% from $2.59 in Q3 2024[4] - Net income attributable to Charles River Laboratories for the three months ended September 27, 2025, was $54,422,000, a decrease of 22% from $69,657,000 in the same period last year[26] - Basic earnings per share for Q3 2025 was $1.11, down from $1.34 in Q3 2024, while diluted earnings per share was $1.10 compared to $1.33 in the prior year[34] - Basic earnings per share, excluding non-GAAP adjustments, was $2.45 for Q3 2025, compared to $2.60 in Q3 2024, indicating a decrease of 5.8%[34] Segment Performance - RMS segment revenue increased by 7.9% to $213.5 million, with organic revenue growth of 6.5% driven by large research model products[6] - DSA segment revenue decreased by 2.3% to $600.7 million, with organic revenue down 3.1% due to lower sales volume[8] - Manufacturing segment revenue decreased by 3.1% to $190.7 million, with organic revenue down 5.1% primarily from lower revenue in CDMO and Biologics Testing[10] - Discovery and Safety Assessment revenue decreased to $600,685,000 for the three months ended September 27, 2025, down from $615,060,000 for the same period in 2024, a decline of 2.3%[29] - Manufacturing Solutions revenue decreased to $190,693,000 for the three months ended September 27, 2025, down from $196,879,000 for the same period in 2024, a decline of 3.1%[30] Guidance and Projections - The company updated its 2025 guidance, narrowing revenue growth expectations to a range of (1.5)% to (0.5)%[12] - Non-GAAP EPS estimate for 2025 is now projected at $10.10 to $10.30, up from the previous range of $9.90 to $10.30[13] Cash Flow and Assets - Cash flows from operating activities for the nine months ended September 27, 2025, were $590,126,000, compared to $575,215,000 for the same period in 2024[28] - Total current assets increased to $1,532,104,000 as of September 27, 2025, from $1,403,071,000 as of December 28, 2024[27] - Long-term debt, net and finance leases, decreased to $2,185,453,000 as of September 27, 2025, from $2,240,205,000 as of December 28, 2024[27] - Cash and cash equivalents increased to $207,097,000 as of September 27, 2025, from $194,606,000 as of December 28, 2024[27] Investment Activities - The company experienced a net cash used in investing activities of $116,514,000 for the nine months ended September 27, 2025, compared to $168,982,000 in the prior year[28] - The company reported a gain of $20.201 million from venture capital and strategic equity investments in Q3 2025, compared to a loss of $2.507 million in Q3 2024[34] Operating Performance - Operating income for the nine months ended September 27, 2025, was $308,602,000, down 21.9% from $395,034,000 in the previous year[26] - The company reported an operating income of $133,799,000 for the three months ended September 27, 2025, which is 13.3% of revenue, compared to 11.6% for the same period in 2024[30] - Non-GAAP operating income for the total company was $197,725,000, which is 19.7% of revenue for the three months ended September 27, 2025, compared to 19.9% for the same period in 2024[30] Strategic Focus - The company remains focused on differentiating itself through innovative solutions and unlocking value in drug development and manufacturing programs[5] - The company intends to continue assessing the potential value of reporting non-GAAP results consistent with applicable rules and regulations[30]

Core Viewpoint - Charles River Laboratories is undergoing a strategic review to enhance its operational efficiency and drive growth in the evolving life sciences market [1] Group 1: Strategic Review - The company is assessing its current business model and exploring opportunities for improvement [1] - This review aims to align the company's resources with market demands and enhance shareholder value [1] Group 2: Market Context - The life sciences industry is experiencing significant changes, necessitating companies to adapt their strategies [1] - Charles River Laboratories is positioned to leverage these changes to strengthen its market presence [1]

Core Points - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Charles River Laboratories International, Inc. [1] - Long-term shareholders of Charles River may seek corporate governance reforms, financial incentives, or other benefits through legal action [2] - Shareholder involvement is emphasized as a means to improve company policies and enhance shareholder value [3] Company Overview - Charles River Laboratories International, Inc. is under scrutiny for possible corporate misconduct that may affect shareholder rights [1][2] - Halper Sadeh LLC has a history of representing investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Luminar Technologies, Inc., urging shareholders to contact the firm to discuss their rights and possible legal actions [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Luminar may seek corporate governance reforms, the return of funds to the company, court-approved financial incentive awards, or other relief and benefits [2][3]. - Shareholder involvement is emphasized as a means to improve company policies, practices, and oversight mechanisms, ultimately enhancing shareholder value [3]. Group 2: Firm's Background and Services - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Verrica Pharmaceuticals, Inc. (NASDAQ: VRCA), urging shareholders to contact the firm to discuss their rights and possible legal actions [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Verrica may seek corporate governance reforms, the return of funds to the company, court-approved financial incentive awards, or other relief and benefits [2][3]. - Shareholder involvement is emphasized as a means to improve company policies, practices, and oversight mechanisms, ultimately enhancing shareholder value [3]. Group 2: Firm's Background and Services - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Charles River Laboratories International, Inc. (NYSE: CRL), urging shareholders to contact the firm to discuss their rights [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Charles River may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2][3]. - Shareholder involvement is emphasized as a means to improve company policies and enhance shareholder value through better management and accountability [3]. Group 2: Legal Representation and Firm Background - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4].

Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Inotiv, Inc., urging shareholders to contact the firm to discuss their rights and possible legal actions [1][2]. Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Inotiv may seek corporate governance reforms, the return of funds to the company, court-approved financial incentive awards, or other relief and benefits [2][3]. - Shareholder involvement is emphasized as a means to improve company policies and practices, enhancing transparency and accountability, which can ultimately increase shareholder value [3]. Group 2: Legal Representation and Contingency Fees - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, having successfully implemented corporate reforms and recovered millions for defrauded investors [4]. - The firm operates on a contingent fee basis, meaning shareholders would not incur out-of-pocket legal fees or expenses [2].

Core Insights - Charles River Laboratories International, Inc. (CRL) is set to report its third-quarter 2025 results on November 5, with adjusted earnings per share (EPS) of $3.12 in the last quarter exceeding the Zacks Consensus Estimate by 24.80% [1] Q3 Estimates - The Zacks Consensus Estimate for CRL's revenues is $984.6 million, indicating a 2.5% decline from the previous year [2] - The Zacks Consensus Estimate for EPS is $2.32, reflecting a 10.4% year-over-year decrease [2] Estimate Revision Trend - Earnings estimates for CRL's third quarter have decreased by 1 cent in the past week [3] Factors Impacting Performance - **Research Models and Services (RMS)**: Expected revenue growth of 6.5% in Q3 2025, driven by strong sales in research model services and favorable pricing, particularly in the GEMS and Insourcing Solutions businesses [4][5] - **Discovery and Safety Assessment (DSA)**: Anticipated revenue decline of 7% due to budget pressures from biopharmaceutical clients and cash constraints faced by smaller biotech firms [6][8] - **Manufacturing Solutions**: Projected revenue drop of 0.6% in Q3 2025, influenced by geopolitical tensions and supply chain disruptions, although the Microbial Solutions business is expected to perform well [9][10] Earnings Whispers - CRL has an Earnings ESP of +0.61% and a Zacks Rank of 3, indicating a moderate chance of beating estimates [11]

Core Insights - Charles River Laboratories International, Inc. (CRL) is valued at a market cap of $9.2 billion and provides drug discovery, non-clinical development, and safety testing services, partnering with various institutions to accelerate research and drug development [1] Financial Performance - Analysts expect CRL to report a profit of $2.32 per share for fiscal Q3 2025, a decrease of 10.4% from $2.59 per share in the same quarter last year [2] - For fiscal 2025, CRL is projected to report a profit of $10.17 per share, down 1.5% from $10.32 per share in fiscal 2024, but is expected to rebound to $10.71 per share in fiscal 2026, reflecting a year-over-year growth of 5.3% [3] Stock Performance - Over the past 52 weeks, CRL has gained marginally, underperforming the S&P 500 Index's 14.5% increase but outperforming the Health Care Select Sector SPDR Fund's 3.4% decline [4] Recent Earnings and Guidance - Following its Q2 earnings release, CRL's shares fell 10.3% despite better-than-expected results, with revenue of $1 billion and adjusted EPS of $3.12 exceeding consensus estimates [5] - The modest revenue growth was attributed to favorable foreign currency movements, while organic revenue declined due to weakness in the Discovery and Safety Assessment (DSA) segment [5] - In light of its Q2 results and expectations for a gradual recovery in the DSA segment, CRL raised its fiscal 2025 guidance, projecting adjusted EPS between $9.90 and $10.30, with revenue expected to decline modestly by 0.5% to 2.5% [6]

Core Insights - The Medical Services sector is experiencing rapid transformation due to digital health advancements, value-based care adoption, and a focus on patient-centric solutions [1] - The global healthcare analytics market is projected to grow from $53.12 billion in 2024 to approximately $369.7 billion by 2034, with a CAGR of 21.4% [1] - The U.S. digital health market is expected to increase from about $145.9 billion in 2024 to $396.7 billion by 2028, reflecting a CAGR of 28.4% [4] Industry Overview - The Zacks Medical Services industry includes third-party service providers and caregivers, transitioning from volume-based to value-based care [3] - The resurgence in medical tourism is boosting the sector, necessitating advanced facilities and specialized external service providers [3] Trends Impacting the Industry - Digital Revolution: The increasing availability of unstructured health data and advanced analytics is driving the importance of big data in healthcare, with the global big data in healthcare market expected to grow from $78 billion in 2024 to $540 billion by 2035, at a CAGR of 19.20% [4] - Healthcare Staffing Shortage: A projected shortfall of over 100,000 healthcare workers by 2028, including 73,000 nursing assistants, is expected to elevate labor costs [2][5] - Revival in Nursing Care Market: Employment for nurse anesthetists, nurse midwives, and nurse practitioners is projected to grow 35% from 2024 to 2034, indicating high demand for specialized nursing roles [6] Current Industry Performance - The Medical Services Industry has underperformed compared to the Medical sector and the S&P 500, with a collective loss of 14.9% over the past year [10] - The industry is currently trading at a forward P/E of 15.1X, lower than the S&P 500's 23.7X and the sector's 20.1X [13] Company Highlights - Labcorp Holdings (LH): Expected earnings growth rate of 11.9% for 2025, with a revenue increase of 7.7% from 2024 [19][20] - Charles River Laboratories (CRL): Projected earnings growth rate of 4.9% for 2026, with revenue growth of 2.6% [23][24] - Teladoc Health (TDOC): Anticipated earnings growth rates of 80.1% for 2025 and 26.9% for 2026 [27][28]