Charles River Laboratories International Inc Reports Second Quarter Financial Results for 2024
Intellectia.AI Updated: 2024-08-08
Charles River Laboratories International, Inc. Reports Second Quarter Financial Results for 2024
Overview Charles River Laboratories International, Inc. (NYSE: CRL) reported its financial results for the second quarter of 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Q2 2024 Vs. Estimate |
|---|---|---|---|---|---|
| Total Revenue | $1.03 billion | $1.06 billion | -3.2% | $1.02 billion | +$0.01 billion |
| GAAP Earnings Per Share (EPS) | $1.74 | $1.89 | -7.9% | ||
| Non-GAAP Earnings Per Share (EPS) | $2.80 | $2.69 | +4.1% | $2.39 | +$0.41 |
Charles River Laboratories experienced a slight decrease in total revenue year-over-year, primarily due to lower performance in the Discovery and Safety Assessment (DSA) and Research Models and Services (RMS) segments. However, non-GAAP earnings per share exceeded expectations and demonstrated growth due to lower performance-based compensation accruals and improvement in the Manufacturing segment.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| RMS | $206.4 million | $209.9 million | -1.7% |
| DSA | $627.4 million | $663.5 million | -5.4% |
| Manufacturing | $192.3 million | $186.5 million | +3.1% |
The RMS segment saw a decline due mainly to lower revenue from non-human primates in China and lower demand in research model services. The DSA segment experienced a fall driven by lower revenue in Discovery Services and Safety Assessment businesses. Conversely, Manufacturing solutions showed positive growth, with increased revenue across all its businesses.
Comments from Company Officers James C. Foster, Chair, President and CEO, commented, "Our financial performance through the first half of this year has been largely in line with our initial outlook; however, forward-looking DSA trends suggest that demand will not improve during the second half of the year. We believe our clients are more focused on reassessing their budgets and reprioritizing their pipelines, but we continue to view strategic outsourcing as a compelling solution to improve their cost efficiency and speed to market."
Dividends and Share Repurchase Program The Board of Directors has approved a new stock repurchase authorization of $1.0 billion, replacing the prior authorization of $1.3 billion, which had $129.1 million remaining.
Forward Guidance Charles River Laboratories revised its 2024 financial guidance due to anticipated softer demand trends from both small and mid-sized biotechnology clients and global biopharmaceutical clients. The outlook for demand improvement in the second half of the year has become less optimistic, notably affecting the DSA segment. The company is implementing restructuring initiatives to achieve significant cost savings.
Stock Price Movement Following the earnings release, Charles River Laboratories’ stock price experienced a decline of 6.03%.
For more detailed financial information and a webcast of the earnings call, please visit ir.criver.com.
