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With a market cap of $6.7 billion, Charles River Laboratories International, Inc. (CRL) is a global, early-stage contract research organization supporting drug discovery and development. Through its three segments - Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions, the company provides essential products, services, and testing solutions to pharmaceutical, biotechnology, government, and academic clients worldwide.
CRL is expected to release its fiscal Q1 2025 earnings results before the market opens on Wednesday, May 7. Ahead of this event, analysts expect the company to report an adjusted profit of $2.06 per share, down 9.3% from $2.27 per share in the prior year's quarter. However, it has surpassed Wall Street's bottom-line estimates in the past four quarters.
For fiscal 2025, analysts forecast the Wilmington, Massachusetts-based company to post adjusted EPS of $9.31, reflecting a 9.8% decrease from $10.32 in fiscal 2024. Nevertheless, adjusted EPS is anticipated to grow 8.4% year-over-year to $10.09 in fiscal 2026.
CRL has declined 49.4% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 8% gain and the Health Care Select Sector SPDR Fund's (XLV) marginal drop over the same period.
Shares of CRL climbed 6.9% on Feb. 19 after the company beat Q4 2024 estimates, reporting adjusted earnings of $2.66 per share and revenue of $1 billion. Despite forecasting a 2025 revenue decline of 7% to 4.5%, investors were encouraged by the management’s comments that biotech funding conditions had improved in 2024, supporting stable to slightly improved demand trends. Additionally, better-than-expected performance in the Discovery and Safety Assessment segment, with revenue of $603.3 million surpassing expectations, contributed to the stock’s surge.
Analysts' consensus rating on Charles River Laboratories stock is cautious, with a "Hold" rating overall. Out of 15 analysts covering the stock, opinions include one "Strong Buy” and 14 "Holds.” The average analyst price target for CRL is $149.64, suggesting a potential upside of 30.7% from current levels.
