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Charles River Labs Says It Expects Sales To Fall, Sending Its Stock Tumbling
CRLCharles River(CRL) Investopedia·2024-08-07 17:31

Core Insights - Charles River Laboratories shares fell over 12% after the company announced an expected decline in sales for the full fiscal year, shifting from previous growth expectations [2][4] - The company reported second-quarter revenue of 1.03billion,meetinganalystexpectations,whileprofitswereslightlyaboveestimatesat1.03 billion, meeting analyst expectations, while profits were slightly above estimates at 94.08 million, both showing a decline from the previous year [2][3] - The board approved a new 1billionstockbuybackplan,replacingaprevious1 billion stock buyback plan, replacing a previous 1.3 billion plan that had approximately 129millionremaining[4]SalesandEarningsOutlook−CEOJamesFosterindicatedthatdemandisexpectedtosofteninthesecondhalfof2024,leadingtoarevisioninthecompany′sfull−yearrevenueguidancetoadeclineof2.5129 million remaining [4] Sales and Earnings Outlook - CEO James Foster indicated that demand is expected to soften in the second half of 2024, leading to a revision in the company's full-year revenue guidance to a decline of 2.5% to 4.5%, compared to earlier expectations of 1% to 4% growth [3] - Earnings per share (EPS) projections were also lowered from 7.60 to 8.10toanewrangeof8.10 to a new range of 5.65 to 5.95[3]StockPerformance−Followingtheannouncement,CharlesRiversharesdroppedto5.95 [3] Stock Performance - Following the announcement, Charles River shares dropped to 200.98, marking a 12.2% decline on the day and approximately a 15% loss since the beginning of the year [4]