CRL Earnings Prediction
The chart below shows how CRL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CRL sees a +1.63% change in stock price 10 days leading up to the earnings, and a +0.20% change 10 days following the report. On the earnings day itself, the stock moves by -1.01%. This data can give you a slight idea of what to expect for the next quarter's release.
CRL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.01B
-1.64%
-1.59%
Gross Margin
33.21%
-0.27%
1.59%
Operating Margin
14.66%
-10.28%
-11.31%
Net Margin
6.96%
-18.79%
-24.27%
EPS
1.33
-21.30%
-23.56%
No Data Available
CRL Earnings Analysis
Charles River Laboratories International, Inc. Corporation (CRL.N) Earnings Conference Call
Positive
Record Free Cash Flow: 1. Record Free Cash Flow: Charles River Laboratories generated record free cash flow of over $200 million in Q3 2024, reflecting strong cash generation and disciplined working capital management.
Shareholder Value Enhancement: 2. Stock Repurchase Program: The company repurchased approximately $100 million worth of shares in Q3 2024 as part of a new $1 billion stock repurchase authorization, demonstrating commitment to enhancing shareholder value.
Cost Savings Impact: 3. Cost Savings Initiatives: The restructuring initiatives implemented since late 2023 are expected to generate approximately $200 million in cumulative annualized cost savings, with about $100 million realized in 2024, enhancing operational efficiency.
Manufacturing Solutions Revenue Increase: 4. Manufacturing Segment Growth: The Manufacturing Solutions segment reported an 11.8% increase in organic revenue compared to Q3 2023, driven by strong performance in the CDMO business, particularly for cell therapy.
DSA Operating Margin Increase: 5. Improved DSA Operating Margin: The DSA segment achieved an operating margin of 27.4% in Q3 2024, reflecting a 20 basis point increase year-over-year, primarily due to cost-saving actions.
Negative
Organic Revenue Decline: 1. Organic Revenue Decline: The company reported an organic revenue decline of 2.7% in Q3 2024, driven by a decrease in revenue from global biopharmaceutical clients, which declined both sequentially and year-over-year.
Operating Margin Decline: 2. Decreased Operating Margin: The operating margin decreased to 19.9%, a drop of 60 basis points year-over-year, primarily due to higher unallocated corporate costs despite improvements in individual business segments.
Earnings Per Share Decline: 3. Earnings Per Share Drop: Earnings per share fell to $2.59, representing a decrease of 4.8% from the previous year, reflecting lower revenue and operating margin.
DSA Revenue Decline: 4. DSA Revenue Decline: The DSA segment experienced a significant organic revenue decline of 7.4%, attributed to lower sales volume in both Discovery services and Safety Assessment businesses.
Rising Corporate Costs: 5. Increased Unallocated Corporate Costs: Unallocated corporate costs rose to $76.8 million, or 6.6% of revenue, compared to 4.7% of revenue last year, primarily due to higher health and fringe-related costs.
CRL FAQs
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CRL Earning Call Sentiment
Charles River Laboratories International, Inc. (CRL) Q3 2024 Earnings Call Transcript
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00:00
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CRL.N
1.69%Positive
The earnings call reveals mixed signals: strong cost-saving initiatives and a $1 billion stock repurchase are positive, but revenue and EPS guidance are weak, with anticipated margin pressure. The Q&A highlights management's cautious optimism but also concerns about pricing headwinds and uncertain future demand. Despite some positive elements, the overall sentiment is tempered by uncertainties, leading to a neutral outlook for stock price movement in the short term.