Financial Data and Key Metrics Changes - The company reported revenue of $1 billion in Q3 2025, a 0.5% decrease year over year, with organic revenue declining 1.6% [15][36] - Earnings per share were $2.43 in Q3, a 6.2% decline from the previous year but slightly above prior outlook [17][36] - The operating margin was 19.7%, a decrease of 20 basis points year over year [16] Business Line Data and Key Metrics Changes - DSA segment revenue was $600.7 million, a 3.1% year over year decrease on an organic basis [18] - RMS revenue increased to $213.5 million, a 6.5% organic growth compared to the previous year [22] - Manufacturing segment revenue was $190.7 million, a 5.1% decrease on an organic basis [25] Market Data and Key Metrics Changes - Revenue from small and mid-sized biotech clients declined due to tighter budgets, while revenue from global biopharmaceutical clients remained below last year's level [15][16] - DSA backlog decreased to $1.8 billion from $1.93 billion at the end of Q2 [19] - The cancellation rate improved in Q3, normalizing towards historical levels [20] Company Strategy and Development Direction - The company is focusing on strengthening its scientific portfolio, divesting underperforming assets, and maximizing financial performance [6][10] - A new $1 billion stock repurchase authorization was approved, replacing a previous authorization [12][42] - The company aims to enhance scientific capabilities in bioanalysis, in vitro services, and new approach methodologies (NAMS) [7][28] Management's Comments on Operating Environment and Future Outlook - Management noted that client demand has stabilized, with signs of improvement in the biotech funding environment [13] - There is cautious optimism regarding the recovery of biotech demand, supported by improved booking activity [20] - The company expects organic revenue to decline by 1.5% to 2.5% for the full year [18][36] Other Important Information - The company has identified $225 million in annualized cost savings, with an additional $70 million expected from various efficiency initiatives [11][72] - The non-GAAP tax rate increased to 28.3%, primarily due to new tax legislation [40] Q&A Session Summary Question: Is the biotech market loosening up? - Management observed an increase in proposals and a decline in cancellations, indicating improved demand from both large pharma and biotech clients [48][49] Question: What is the outlook for DSA growth in 2026? - Management expressed cautious optimism for DSA growth, contingent on continued improvement in bookings and client budgets [52][81] Question: Can you elaborate on the $70 million in cost savings? - Cost savings will come from network planning, workforce rightsizing, procurement savings, and internal efficiencies [72][74] Question: What is the status of asset divestitures? - The company is actively working on divesting certain assets, aiming for completion by mid-2026 [89]

Core Insights - Charles River Laboratories (CRL) reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.32 per share, but down from $2.59 per share a year ago [1] - The company achieved a revenue of $1 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.06% [3] Earnings Performance - The earnings surprise for the quarter was +4.74%, following a previous quarter where the company reported earnings of $3.12 per share against an expectation of $2.50, resulting in a surprise of +24.8% [2] - Over the last four quarters, Charles River has consistently surpassed consensus EPS estimates [2] Revenue Insights - Year-over-year revenue comparison shows a slight decrease from $1.01 billion to $1 billion [3] - The company has also topped consensus revenue estimates for four consecutive quarters [3] Stock Performance - Charles River shares have declined approximately 3.7% since the beginning of the year, contrasting with the S&P 500's gain of 15.1% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $2.40 on revenues of $981.63 million, and for the current fiscal year, it is $10.17 on revenues of $3.98 billion [8] - The outlook for the Medical Services industry, where Charles River operates, is currently in the bottom 41% of Zacks industries, which may impact stock performance [9]

Financial Performance & Strategic Review - Charles River's Board supports the company's strategic direction, focusing on strengthening its scientific portfolio, divesting underperforming assets, maximizing financial performance, and maintaining disciplined capital deployment[7] - The company is refining its portfolio by selling certain underperforming or non-core businesses, representing approximately 7% of the estimated 2025 revenue[9] - These divestitures are expected to result in non-GAAP earnings per share accretion of at least $0.30 on an annualized basis once completed, excluding reinvestment benefits or interest expense impacts[9] - A new $1.0 billion stock repurchase authorization was approved by the Board in October, replacing a previous authorization under which $450.7 million in common stock had been repurchased since August 2024[10] 3Q25 Results & Updated Guidance - 3Q25 revenue was $1,004.9 million, a 0.5% decrease compared to $1,009.8 million in 3Q24, with a 1.6% organic revenue decline[13] - The GAAP EPS for 3Q25 was $1.10, a 17.3% decrease from $1.33 in 3Q24, while the non-GAAP EPS was $2.43, a 6.2% decrease from $2.59[15] - The company revised its 2025 revenue growth guidance to a decline of 1.5%-0.5% reported and a decline of 2.5%-1.5% organic[16] - The 2025 non-GAAP EPS estimate is now $10.10-$10.30, which includes a $0.10 guidance improvement at the midpoint[36] Segment Performance & Outlook - DSA (Discovery and Safety Assessment) revenue for 3Q25 was $600.7 million, a 2.3% decrease compared to $615.1 million in 3Q24, with a 3.1% organic revenue decline[17] - RMS (Research Models and Services) revenue for 3Q25 was $213.5 million, a 7.9% increase compared to $197.8 million in 3Q24, with a 6.5% organic revenue growth[25] - Manufacturing revenue for 3Q25 was $190.7 million, a 3.1% decrease compared to $196.9 million in 3Q24, with a 5.1% organic revenue decline[28]

Core Insights - Charles River Laboratories raised its annual profit forecast following strong third-quarter results, driven by stabilized demand in drug discovery and development services [1] Financial Performance - The company reported robust third-quarter results, indicating a positive trend in its financial performance [1] - The updated profit forecast reflects confidence in continued demand for its services [1] Market Demand - Stabilized demand for drug discovery and development services has contributed significantly to the company's performance [1]

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].