This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
Earnings Rise at Charles River
by Zacks Equity ResearchFebruary 14, 2012 | Comments : 0 Recommended this article: (0)
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Charles River Laboratories International Inc. (CRL - Snapshot Report) reported fourth quarter 2011 earnings (excluding special items) of 69 cents per share, much above the Zacks Consensus Estimate of 56 cents, and 15% above the year-ago earnings of 60 cents. The earnings benefited from share repurchases.
Quarterly revenue of $291.0 million, up 3.3% year over year, was driven by higher sales in the Research Models and Services (“RMS”) segment and was partially offset by a decline in the Preclinical Services (“PCS”) segment sales. Revenue came in above the Zacks Consensus Estimate of $282 million.
For full year 2011, Charles River reported earnings of $2.56 per share, above the Zacks Consensus Estimate of $2.43 and well beyond the guidance range of $2.40–$2.45. Earnings, were up 28.6% from the year-ago figure of $1.99 per share. Revenues, increased marginally by 80 bps from the year-ago figure to $1.14 billion, but was slightly below the Zacks Consensus Estimate of $1.15 billion.
Quarter in Detail
Charles Riveroperates through two segments - RMS and PCS.
Revenue from the RMS segment was $182.4 million in the fourth quarter, up 8.3% from the prior-year period. Segment revenue was boosted by strong sales of In Vitro and Avian products and RMS services. Excluding the 0.4% gain from foreign exchange (“Fx”), RMS segment revenue moved up 7.9% year over year.
Revenue from the PCS segment was $108.5 million in the fourth quarter, down 4.2% from the prior-year period (down 3.9% excluding the negative impact of Fx). Unfavorable sales mix, comprising a greater proportion of short-term less complex studies, adversely affected the revenue performance.
Outlook for 2012
Charles River reiterated its 2012 adjusted earnings guidance range of $2.60–$2.70 per share, provided earlier in December 2011. The Zacks Consensus Estimate of $2.64 per share is within the company’s guidance range. Net sales are expected to grow in the range of 0% - 2%, with Fx impact of approximately 1%.
We currently have a Neutral recommendation on Charles River. The stock carries a Zacks #3 Rank, which translates into a short-term Hold rating.
Despite consistent performance of the RMS segment, the PCS business fails to show any definite sign of recovery, thus keeping us on the sidelines.
Please login to Zacks.com or register to post a comment.