What To Expect From Charles River Laboratories’s (CRL) Q3 Earnings

CRL Cover Image

Lab services company Charles River Laboratories (NYSE: CRL) will be announcing earnings results this Wednesday before market hours. Here’s what you need to know.

Charles River Laboratories beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $1.03 billion, flat year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Is Charles River Laboratories a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Charles River Laboratories’s revenue to decline 1.5% year on year to $994.2 million, in line with the 1.6% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.34 per share.

Charles River Laboratories Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Charles River Laboratories has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.7% on average.

Looking at Charles River Laboratories’s peers in the drug development inputs & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 2.7%, and West Pharmaceutical Services reported revenues up 7.7%, topping estimates by 2.1%. Medpace traded up 8.9% following the results while West Pharmaceutical Services was also up 7.5%.

Read our full analysis of Medpace’s results here and West Pharmaceutical Services’s results here.

Investors in the drug development inputs & services segment have had steady hands going into earnings, with share prices flat over the last month. Charles River Laboratories is up 2.2% during the same time and is heading into earnings with an average analyst price target of $186.87 (compared to the current share price of $178.86).

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