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CRL Stock Gains on Q2 Earnings and Revenue Beat, Raises '25 View
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Key Takeaways
CRL's Q2 adjusted EPS rose 11.4% to $3.12, beating estimates by 24.8%.
CRL's revenues grew 0.6% to $1.03B, led by gains in RMS and Manufacturing Solutions segments.
CRL raised its 2025 EPS and revenue guidance, citing signs of biopharma demand stabilization.
Charles River Laboratories International, Inc. (CRL - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.12, which rose 11.4% year over year. The figure surpassed the Zacks Consensus Estimate by 24.8%.
On a GAAP basis, the company reported earnings of $1.06 per share compared with the year-ago quarter’s level of $1.74.
CRL’s Q2 Revenues
Revenues totaled $1.03 billion, which beat the Zacks Consensus Estimate by 5%. The top line rose 0.6% from the year-ago quarter’s level (down 0.5% organically, excluding the impact of foreign currency translation).
Following the announcement, CRL shares rose 9.3% in the pre-market trading today.
CRL’s Q2 Segmental Performance in Detail
The company reports under three segments — Research Models and Services (“RMS”), Discovery and Safety Assessment (“DSA”) and Manufacturing Solutions.
RMS’ revenues totaled $213.3 million, up 3.3% year over year (up 2.3% organically). The organic growth was primarily due to higher revenues for large research model products and research model services, including the Genetically Engineered Models and Services (“GEMS”) and Insourcing Solutions businesses. Our model estimated RMS business revenues to be $207.3 million in the second quarter.
DSA’s revenues amounted to $618 million, down 1.5% year over year and 2.4% organically. The organic decline in revenues can be attributed to lower sales volume for both discovery and regulated safety assessment services. Our model projected revenues of $567.7 million for this segment.
Manufacturing Solutions’ revenues totaled $200.8 million, up 4.4% year over year (up 2.9% organically). The increase was mainly due to higher revenues in the Microbial Solutions business, partially offset by lower revenues in the Biologics Testing business. Our model projected revenues to be $200.9 million for the second quarter.
CRL’s Margin Performance
The gross profit in the reported quarter was $357.1 million, up 0.9% from the prior-year quarter’s level. The gross margin of 34.6% expanded 12 basis points (bps) year over year.
Selling, general & administrative expenses rose 12.8% year over year to $191.5 million. The adjusted operating profit totaled $165.5 million, reflecting a 10% decline from the prior-year quarter’s level. The adjusted operating margin contracted 189 bps to 16%.
CRL: Liquidity Position
Charles River exited the second quarter of 2025 with cash and cash equivalents of $182.8 million compared with $229.4 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $376.3 million compared with $323.4 million a year ago.
Charles River Laboratories International, Inc. Price, Consensus and EPS Surprise
For 2025, the company now expects total revenues to decline in the range of 2.56-0.5% (an improvement from the earlier 5.5-3.5% range) on a reported basis. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.89 billion, implying a decline of 3.9%. Organically, revenues are expected to decline in the range of 3-1% (previously 4.5-2.5%).
Adjusted EPS for 2025 is expected to be in the range of $9.90-$10.30 (earlier $9.30-$9.80). The Zacks Consensus Estimate for the metric is pegged at $9.62.
Our Take on CRL
Charles River exited the second quarter of 2025 on a solid note, with both earnings and revenues beating their respective estimate.There were continued signs of biopharmaceutical demand stabilization through the quarter. On a segmental basis, an organic revenue decline in the DSA segment was partially offset by organic revenue growth in the Manufacturing Solutions and RMS segments.
However, the contraction of the operating margin raises concern. The company’s updated 2025 financial guidance is encouraging.
CRL’s Zacks Rank and Other Key Picks
Charles River currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Boston Scientific (BSX - Free Report) , Cardinal Health (CAH - Free Report) and Cencora (COR - Free Report) .
Revenues of $5.06 billion topped the Zacks Consensus Estimate by 2.3%. BSX has a long-term earnings growth rate of 14% compared with the industry’s 14.2%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%.
CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
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CRL Stock Gains on Q2 Earnings and Revenue Beat, Raises '25 View
Key Takeaways
Charles River Laboratories International, Inc. (CRL - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $3.12, which rose 11.4% year over year. The figure surpassed the Zacks Consensus Estimate by 24.8%.
On a GAAP basis, the company reported earnings of $1.06 per share compared with the year-ago quarter’s level of $1.74.
CRL’s Q2 Revenues
Revenues totaled $1.03 billion, which beat the Zacks Consensus Estimate by 5%. The top line rose 0.6% from the year-ago quarter’s level (down 0.5% organically, excluding the impact of foreign currency translation).
Following the announcement, CRL shares rose 9.3% in the pre-market trading today.
CRL’s Q2 Segmental Performance in Detail
The company reports under three segments — Research Models and Services (“RMS”), Discovery and Safety Assessment (“DSA”) and Manufacturing Solutions.
RMS’ revenues totaled $213.3 million, up 3.3% year over year (up 2.3% organically). The organic growth was primarily due to higher revenues for large research model products and research model services, including the Genetically Engineered Models and Services (“GEMS”) and Insourcing Solutions businesses. Our model estimated RMS business revenues to be $207.3 million in the second quarter.
DSA’s revenues amounted to $618 million, down 1.5% year over year and 2.4% organically. The organic decline in revenues can be attributed to lower sales volume for both discovery and regulated safety assessment services. Our model projected revenues of $567.7 million for this segment.
Manufacturing Solutions’ revenues totaled $200.8 million, up 4.4% year over year (up 2.9% organically). The increase was mainly due to higher revenues in the Microbial Solutions business, partially offset by lower revenues in the Biologics Testing business. Our model projected revenues to be $200.9 million for the second quarter.
CRL’s Margin Performance
The gross profit in the reported quarter was $357.1 million, up 0.9% from the prior-year quarter’s level. The gross margin of 34.6% expanded 12 basis points (bps) year over year.
Selling, general & administrative expenses rose 12.8% year over year to $191.5 million. The adjusted operating profit totaled $165.5 million, reflecting a 10% decline from the prior-year quarter’s level. The adjusted operating margin contracted 189 bps to 16%.
CRL: Liquidity Position
Charles River exited the second quarter of 2025 with cash and cash equivalents of $182.8 million compared with $229.4 million at the end of the first quarter.
Cumulative net cash provided by operating activities at the end of the second quarter was $376.3 million compared with $323.4 million a year ago.
Charles River Laboratories International, Inc. Price, Consensus and EPS Surprise
Charles River Laboratories International, Inc. price-consensus-eps-surprise-chart | Charles River Laboratories International, Inc. Quote
Charles River’s Updated 2025 Guidance
For 2025, the company now expects total revenues to decline in the range of 2.56-0.5% (an improvement from the earlier 5.5-3.5% range) on a reported basis. The Zacks Consensus Estimate for 2025 revenues is pegged at $3.89 billion, implying a decline of 3.9%. Organically, revenues are expected to decline in the range of 3-1% (previously 4.5-2.5%).
Adjusted EPS for 2025 is expected to be in the range of $9.90-$10.30 (earlier $9.30-$9.80). The Zacks Consensus Estimate for the metric is pegged at $9.62.
Our Take on CRL
Charles River exited the second quarter of 2025 on a solid note, with both earnings and revenues beating their respective estimate.There were continued signs of biopharmaceutical demand stabilization through the quarter. On a segmental basis, an organic revenue decline in the DSA segment was partially offset by organic revenue growth in the Manufacturing Solutions and RMS segments.
However, the contraction of the operating margin raises concern. The company’s updated 2025 financial guidance is encouraging.
CRL’s Zacks Rank and Other Key Picks
Charles River currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Boston Scientific (BSX - Free Report) , Cardinal Health (CAH - Free Report) and Cencora (COR - Free Report) .
Boston Scientific, carrying a Zacks Rank #2 at present, reported a second-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 4.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Revenues of $5.06 billion topped the Zacks Consensus Estimate by 2.3%. BSX has a long-term earnings growth rate of 14% compared with the industry’s 14.2%.
Cardinal Health, carrying a Zacks Rank #2 at present, posted third-quarter fiscal 2025 adjusted EPS of $2.35, which exceeded the Zacks Consensus Estimate by 9.3%. Revenues of $54.88 billion missed the Zacks Consensus Estimate by 0.3%.
CAH has an estimated long-term earnings growth rate of 10.9% compared with the industry’s 9.9%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78 and the same for revenues is pinned at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.