Charles River Laboratories International, Inc. (CRL Quick QuoteCRL - Free Report) reported first-quarter 2025 adjusted earnings per share (EPS) of $2.34, which rose 3.1% year over year. The figure surpassed the Zacks Consensus Estimate by 13.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

On a GAAP basis, the company reported earnings of 50 cents per share compared with the year-ago quarter’s EPS of $1.31. 

CRL’s Q1 Revenues

Revenues totaled $984.2 million, which beat the Zacks Consensus Estimate by 5.2%. However, the top line declined 2.4% from the year-ago quarter’s level (down 1.8% organically, excluding the impact of foreign currency translation).

Following the announcement, CRL shares rose 7.4% in the pre-market trading today.  

CRL’s Q1 Segments in Detail

The company reports under three segments — Research Models and Services (“RMS”), Discovery and Safety Assessment (“DSA”) and Manufacturing Solutions.

RMS’ revenues in the first quarter totaled $213.1 million, down 3.5% year over year (down 2.5% organically). The organic decline in revenues was primarily due to the timing of NHP shipments in China and lower revenues for the Cell Solutions business. This was partially offset by higher sales of small research models across all geographic areas, mainly due to higher pricing. Our model estimated RMS business revenues to be $203 million in the first quarter.

DSA’s revenues in the first quarter amounted to $592.6 million, down 2.1% year over year and 1.4% organically. The organic decline in revenues can be attributed to lower revenues for discovery services. Our model projected revenues of $545.8 million for this segment.

Manufacturing Solutions’ revenues in the first quarter totaled $178.5 million, down 3.6% year over year (down 2.2% organically). The decrease was mainly due to the CDMO and Biologics Testing businesses. Our model projected revenues to be $186.1 million for the first quarter.

CRL’s Margin Performance

The gross profit in the reported quarter was $317.7 million, down 7.9% from the prior-year quarter’s level. The gross margin of 32.3% contracted 181 basis points (bps) year over year.

Selling, general & administrative expenses declined 4.6% year over year to $177.8 million. The adjusted operating profit totaled $139.9 million, reflecting a 11.7% decline from the prior-year quarter’s level. The adjusted operating margin contracted 146 bps to 14.2%.

CRL: Liquidity Position & Share Repurchase

Charles River exited the first quarter of 2025 with cash and cash equivalents of $229.4 million compared with $194.6 million at the end of the fourth quarter of 2024.

Cumulative net cash provided by operating activities at the end of the first quarter was $171.7 million compared with $129.9 million in the prior year.

During the first quarter, the company repurchased 2.1 million shares for a total of $350 million. Under its $1 billion stock repurchase authorization, approved on Aug. 2, 2024, Charles River has repurchased a total of 2.6 million shares, and had $549.3 million remaining on the program through March 29, 2025.

Charles River’s 2025 Guidance

For 2025, the company expects total revenues to decline in the range of 5.5%-3.5% (an improvement from the earlier 4.5-7% range) on a reported basis. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.81 billion, implying a decline of 5.8%. Organically, revenues are expected to decline in the range of 4.5%-2.5% (previously 3.5-5.5%).

Adjusted EPS for 2025 is expected in the range of $9.30-$9.80 (earlier $9.10-$9.60). The Zacks Consensus Estimate for the metric is pegged at $9.31.

Our Take on CRL

Charles River exited the first quarter of 2025 on a solid note, with both earnings and revenues beating respective estimates. The quarter demonstrated continued signs of biopharmaceutical demand stabilization. The company raised its 2025 guidance, reflecting improved net bookings in the DSA segment during the quarter, which are expected to result in additional DSA revenues this year. However, each of the three segments posted a year-over-year decline in the quarter. The contraction of both margins raises concerns. FX headwinds also impacted first-quarter results.

CRL’s Zacks Rank and Key Picks

Charles River currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO Quick QuoteANGO - Free Report) , Integer Holdings Corporation (ITGR Quick QuoteITGR - Free Report) and Boston Scientific (BSX Quick QuoteBSX - Free Report) .

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.

Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.

ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.

Boston Scientific, currently carrying a Zacks Rank #2, reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.