CRL Q1 Earnings & Revenues Beat Estimates, Stock Rises, '25 View Up

Core Insights - Charles River Laboratories International, Inc. (CRL) reported first-quarter 2025 adjusted earnings per share (EPS) of $2.34, a 3.1% increase year over year, exceeding the Zacks Consensus Estimate by 13.6% [1] - Total revenues for the first quarter reached $984.2 million, surpassing the Zacks Consensus Estimate by 5.2%, but reflecting a 2.4% decline from the previous year [2] - The company raised its 2025 guidance, indicating improved net bookings in the Discovery and Safety Assessment (DSA) segment [12] Financial Performance - The gross profit for the quarter was $317.7 million, down 7.9% from the prior year, with a gross margin of 32.3%, contracting 181 basis points year over year [7] - Selling, general & administrative expenses decreased by 4.6% year over year to $177.8 million, while adjusted operating profit fell 11.7% to $139.9 million [7] - The company exited the first quarter with cash and cash equivalents of $229.4 million, an increase from $194.6 million at the end of the previous quarter [8] Segment Performance - Research Models and Services (RMS) revenues totaled $213.1 million, down 3.5% year over year, primarily due to timing of shipments in China and lower revenues in the Cell Solutions business [4] - Discovery and Safety Assessment (DSA) revenues amounted to $592.6 million, a decline of 2.1% year over year, attributed to lower revenues for discovery services [5] - Manufacturing Solutions revenues were $178.5 million, down 3.6% year over year, mainly due to declines in CDMO and Biologics Testing businesses [6] Shareholder Returns - During the first quarter, the company repurchased 2.1 million shares for a total of $350 million, with a remaining authorization of $549.3 million under its $1 billion stock repurchase program [9] 2025 Guidance - For 2025, CRL expects total revenues to decline in the range of 5.5%-3.5%, an improvement from the earlier estimate of 4.5%-7% [10] - Adjusted EPS for 2025 is projected to be in the range of $9.30-$9.80, up from the previous range of $9.10-$9.60 [11]