Core Viewpoint - Charles River Laboratories (CRL) has experienced a decline in share price of approximately 6.8% since its last earnings report, underperforming the S&P 500 index [1][2]. Financial Performance - For Q4 2025, CRL reported adjusted earnings per share (EPS) of $2.39, a decrease of 10.2% year over year, but exceeding the Zacks Consensus Estimate by 2.51% [3]. - The company recorded a full-year 2025 EPS of $10.28, down 0.4% from the previous year, yet surpassing the Zacks Consensus Estimate by 0.6% [4]. - Total revenues for Q4 2025 were $994.2 million, beating the Zacks Consensus Estimate by 0.84%, but reflecting a 0.8% decline from the same quarter last year [5]. - Full-year 2025 revenues amounted to $4.02 billion, a decrease of 0.9% from the prior year, while also exceeding the Zacks Consensus Estimate by 0.2% [5]. Segment Performance - Revenues from the Research Models and Services (RMS) segment were $206.3 million, up 1% year over year, but down 0.9% organically [6]. - The Discovery and Safety Assessment (DSA) segment reported revenues of $591.6 million, down 2% year over year and 3.3% organically [7]. - Manufacturing Solutions generated revenues of $196.4 million, reflecting a 0.7% increase year over year, but a 2.1% decline organically [8]. Margin Analysis - Gross profit for Q4 was $414.4 million, an increase of 8.8% from the prior year, with a gross margin of 41.7%, up 368 basis points year over year [9]. - Selling, general, and administrative expenses rose by 0.2% year over year to $196.1 million, while adjusted operating profit increased by 17.8% to $218.3 million, leading to an adjusted operating margin expansion of 347 basis points to 22% [9]. Liquidity Position - At the end of Q4 2025, CRL had cash and cash equivalents of $213.8 million, up from $194.6 million at the end of 2024 [11]. - Cumulative net cash provided by operating activities was $737.6 million, compared to $734.6 million a year ago [11]. Future Guidance - For 2026, CRL expects total revenues to be flat to a growth of 1.5%, with the Zacks Consensus Estimate for 2025 revenues at $4.07 billion, indicating a 1.6% growth [12]. - Adjusted EPS for 2026 is projected to be in the range of $10.70 to $11.20, with the Zacks Consensus Estimate at $10.59 [12]. Estimate Trends - Recent estimates for CRL have trended downward, with a consensus estimate shift of -20.22% over the past month [13]. VGM Scores - CRL currently holds a subpar Growth Score of D and a similar score for momentum, but has a grade of B for value, placing it in the top 40% for value investors [14]. Overall Outlook - The overall trend for estimates has been downward, indicating a shift in expectations, with CRL holding a Zacks Rank of 3 (Hold), suggesting an in-line return in the coming months [15].

Charles River Laboratories 4Q 2025 Results & 2026 Guidance February 18, 2026 Caution Concerning Forward-Looking Statements. This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "intend," "will," "may," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends o ...

Core Insights - The upcoming earnings report for Charles River Laboratories (CRL) is anticipated to show a quarterly earnings per share (EPS) of $2.33, reflecting a decline of 12.4% year-over-year [1] - Revenue is forecasted to be $985.92 million, indicating a decrease of 1.7% compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised 0.1% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts project 'Revenue- Research Models and Services' to be $202.12 million, a decrease of 1% year-over-year [5] - The estimate for 'Revenue- Manufacturing Solutions' is $199.51 million, reflecting a year-over-year increase of 2.3% [5] - 'Revenue- Discovery and Safety Assessment' is expected to reach $585.53 million, indicating a decline of 3% from the previous year [5] Operating Income Estimates - 'Operating income- Research Models and Services- Non-GAAP' is expected to be $42.04 million, down from $46.54 million in the same quarter last year [6] - 'Operating income- Discovery and Safety Assessment- Non-GAAP' is projected at $142.16 million, compared to $148.98 million in the previous year [6] - 'Operating income- Manufacturing Solutions- Non-GAAP' is estimated to be $50.75 million, down from $55.91 million year-over-year [7] - The average prediction for 'Operating income- Research Models and Services' is $30.77 million, compared to $13.77 million in the same quarter last year [7] - 'Operating income- Discovery and Safety Assessment' is expected to reach $107.95 million, up from $62.86 million in the previous year [8] Stock Performance - Charles River shares have decreased by 26.6% in the past month, contrasting with the Zacks S&P 500 composite's decline of 1.7% [8] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [8]

Financial Performance - The company's LTM 2025 revenue was approximately $40237 billion, with the DSA segment contributing 6001%[13,74] - The company expects to deliver approximately $295 million in cumulative, annualized cost savings by 2026[48] - The company's capital expenditures represented 51% of LTM revenue, compared to a peak of 82% in 2022[54] - Approximately $450 million in stock repurchases were made in 2024-2025[54] Market Position and Strategy - The company supported over 80% of FDA-approved novel drugs in the last five years (2021-2025)[11] - The company estimates the addressable market opportunity to be approximately $25 billion[11] - The company's revenue from the biopharma industry is approximately 70%[9] - The company plans to divest underperforming or non-core assets representing approximately 7% of 2025E revenue[52] Acquisitions and Outlook - The company plans to acquire K.F. (Cambodia) Ltd for approximately $510 million, expected to close in early Q1 2026[53] - The company plans to acquire the remaining 79% equity stake of PathoQuest SAS for approximately $60 million, expected to close by the end of Q1 2026[53] - PathoQuest is expected to generate $15-$20 million in 2026 annual revenue[53]

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]

Financial Performance & Guidance - Charles River's 2Q25 revenue reached $1032.1 million, a 0.6% increase year-over-year, but experienced a 0.5% organic decline[12, 36] - Non-GAAP EPS for 2Q25 was $3.12, an 11.4% increase year-over-year[14, 36] - The company is raising its revenue guidance by +150 bps to a 1%-3% decrease organically and Non-GAAP EPS by +$0.55 at midpoint to $9.90-$10.30[15] - The updated 2025 organic revenue growth guidance is a decrease of 3.0%-1.0%[16, 37] - Free cash flow for 2Q25 was $169.3 million, with FY 2025 guidance at $430-$470 million[49] Segment Performance - DSA (Discovery and Safety Assessment) revenue for 2Q25 was $618.0 million, a 1.5% decrease year-over-year, with a 2.4% organic decline[17] - RMS (Research Models and Services) revenue for 2Q25 was $213.3 million, a 3.3% increase year-over-year, with a 2.3% organic increase[26] - Manufacturing Solutions revenue for 2Q25 was $200.8 million, a 4.4% increase year-over-year, with a 2.9% organic increase[30] Demand Trends & Outlook - DSA net book-to-bill dipped back below 1x in 2Q25, to 0.82x [10] - The company now expects DSA revenue to decline at a low- to mid-single-digit rate in 2025, an improvement from the prior outlook of a mid-single-digit decline[21] - NAMs (New Approach Methodologies) portfolio generates approximately $200 million in annual DSA revenue[24]