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Here's How Charles River Stock Is Placed Ahead of Q3 Earnings
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Key Takeaways
Charles River will report Q3 2025 results on Nov. 5, before the market opens.
CRL's RMS revenues are projected to rise 6.5% on strong model sales and NHP shipment timing.
Charles River's DSA revenues are expected to fall 7% amid cautious biotech spending and NIH funding cuts.
Charles River Laboratories International, Inc. (CRL - Free Report) is scheduled to report third-quarter 2025 results on Nov. 5, before the market opens.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $3.12 surpassed the Zacks Consensus Estimate by 24.80%. Earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 12.84%.
Q3 Estimates for CRL
The Zacks Consensus Estimate for revenues is pegged at $984.6 million, suggesting a 2.5% decline from the year-ago reported figure.
The Zacks Consensus Estimate for EPS of $2.32 indicates a 10.4% year-over-year decrease.
Estimate Revision Trend Ahead of CRL’s Q3 Earnings
Estimates for Charles River’s third-quarter earnings have dropped 1 cent in the past seven days.
Here’s a brief recap of the Wilmington, MA-based drug development company’s performance leading up to this announcement.
CRL: Factors at Play
Research Models and Services (“RMS”)
Within this segment, Charles River may have benefited from higher revenues for research model services, including in the GEMS and Insourcing Solutions businesses. Sales of small research models are likely to have remained solid in all geographic regions, supported by favorable pricing. The timing of NHP shipments to third-party clients in China and for Noveprim is also expected to have boosted revenues. Management earlier noted that NHP revenues in the third quarter would be even stronger than in the second, mainly due to the acceleration of certain shipments from the fourth quarter.
Charles River Laboratories International, Inc. Price and EPS Surprise
Despite the uncertainties surrounding NIH budget cuts, revenues from academic and government client segments are likely to have remained favorable in the third quarter. However, demand from early-stage biotech clients for Charles River Accelerator and Development Lab (“CRADL”) services may have been affected by funding challenges, limiting the anticipated utilization of CRADL capacity.
Our model estimates that Charles River’s RMS business revenues will increase 6.5% in the third quarter of 2025.
Discovery and Safety Assessment (“DSA”)
Last year, Charles River’s biopharmaceutical clients intensified their restructuring efforts and reprioritized their drug development programs, which put pressure on budgets. Although demand trends appear to be stabilizing, the company observed that smaller biotechs still face cash constraints due to slower biotech funding. Additionally, the overall pricing environment may have remained unchanged. Combined, these factors are expected to unfavorably impact the performance of both the Discovery and Safety Assessment businesses in the third quarter of 2025, affecting overall revenues.
However, Charles River’s demand key performance indicators (KPIs) for small and mid-sized biotech clients, including net bookings and the net book-to-bill ratio, are likely to have stayed stable.
Per our model estimate, Charles River’s DSA business revenues are expected to decline 7% year over year.
Manufacturing Solutions
The segment is expected to have benefited from the solid performance of the Microbial Solutions business, driven by the Accugenix microbial identification services and Celsis microbial detection platform. Endosafe revenues are likely to have remained strong due to the ongoing client adoption of rapid manufacturing quality control testing solutions. In the cell and gene therapy CDMO business, the wind-down of one commercial client may have hurt revenues, while gene therapy offerings may have contributed favorably.
Our model estimates Charles River’s Manufacturing business revenues will drop 0.6% in the third quarter of 2025.
Moreover, heightened geopolitical tensions, disruptions in global supply chains and labor markets have created a challenging business environment for Charles River. The company also faces tariffs on imports from its major supplier countries, such as Vietnam, Mauritius and China, likely driving up its operating expenses and affecting its profitability.
Earnings Whispers for CRL Stock
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here:
Earnings ESP: Charles River has an Earnings ESP of +0.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Charles River currently carries a Zacks Rank #3.
Other Key MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
Exact Sciences (EXAS - Free Report) has an Earnings ESP of +56.25% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.
EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter’s figure.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +6.24% and a Zacks Rank #1. The company is expected to release third-quarter 2025 results soon.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.
Encompass Health (EHC - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Oct. 29.
EHC’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.02%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 15.5% from the year-ago quarter figure.
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Here's How Charles River Stock Is Placed Ahead of Q3 Earnings
Key Takeaways
Charles River Laboratories International, Inc. (CRL - Free Report) is scheduled to report third-quarter 2025 results on Nov. 5, before the market opens.
In the last reported quarter, the company’s adjusted earnings per share (EPS) of $3.12 surpassed the Zacks Consensus Estimate by 24.80%. Earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 12.84%.
Q3 Estimates for CRL
The Zacks Consensus Estimate for revenues is pegged at $984.6 million, suggesting a 2.5% decline from the year-ago reported figure.
The Zacks Consensus Estimate for EPS of $2.32 indicates a 10.4% year-over-year decrease.
Estimate Revision Trend Ahead of CRL’s Q3 Earnings
Estimates for Charles River’s third-quarter earnings have dropped 1 cent in the past seven days.
Here’s a brief recap of the Wilmington, MA-based drug development company’s performance leading up to this announcement.
CRL: Factors at Play
Research Models and Services (“RMS”)
Within this segment, Charles River may have benefited from higher revenues for research model services, including in the GEMS and Insourcing Solutions businesses. Sales of small research models are likely to have remained solid in all geographic regions, supported by favorable pricing. The timing of NHP shipments to third-party clients in China and for Noveprim is also expected to have boosted revenues. Management earlier noted that NHP revenues in the third quarter would be even stronger than in the second, mainly due to the acceleration of certain shipments from the fourth quarter.
Charles River Laboratories International, Inc. Price and EPS Surprise
Charles River Laboratories International, Inc. price-eps-surprise | Charles River Laboratories International, Inc. Quote
Despite the uncertainties surrounding NIH budget cuts, revenues from academic and government client segments are likely to have remained favorable in the third quarter. However, demand from early-stage biotech clients for Charles River Accelerator and Development Lab (“CRADL”) services may have been affected by funding challenges, limiting the anticipated utilization of CRADL capacity.
Our model estimates that Charles River’s RMS business revenues will increase 6.5% in the third quarter of 2025.
Discovery and Safety Assessment (“DSA”)
Last year, Charles River’s biopharmaceutical clients intensified their restructuring efforts and reprioritized their drug development programs, which put pressure on budgets. Although demand trends appear to be stabilizing, the company observed that smaller biotechs still face cash constraints due to slower biotech funding. Additionally, the overall pricing environment may have remained unchanged. Combined, these factors are expected to unfavorably impact the performance of both the Discovery and Safety Assessment businesses in the third quarter of 2025, affecting overall revenues.
However, Charles River’s demand key performance indicators (KPIs) for small and mid-sized biotech clients, including net bookings and the net book-to-bill ratio, are likely to have stayed stable.
Per our model estimate, Charles River’s DSA business revenues are expected to decline 7% year over year.
Manufacturing Solutions
The segment is expected to have benefited from the solid performance of the Microbial Solutions business, driven by the Accugenix microbial identification services and Celsis microbial detection platform. Endosafe revenues are likely to have remained strong due to the ongoing client adoption of rapid manufacturing quality control testing solutions. In the cell and gene therapy CDMO business, the wind-down of one commercial client may have hurt revenues, while gene therapy offerings may have contributed favorably.
Our model estimates Charles River’s Manufacturing business revenues will drop 0.6% in the third quarter of 2025.
Moreover, heightened geopolitical tensions, disruptions in global supply chains and labor markets have created a challenging business environment for Charles River. The company also faces tariffs on imports from its major supplier countries, such as Vietnam, Mauritius and China, likely driving up its operating expenses and affecting its profitability.
Earnings Whispers for CRL Stock
Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is the case here:
Earnings ESP: Charles River has an Earnings ESP of +0.61%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Charles River currently carries a Zacks Rank #3.
Other Key MedTech Picks
Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:
Exact Sciences (EXAS - Free Report) has an Earnings ESP of +56.25% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.
EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter’s figure.
ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +6.24% and a Zacks Rank #1. The company is expected to release third-quarter 2025 results soon.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.
Encompass Health (EHC - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Oct. 29.
EHC’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.02%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 15.5% from the year-ago quarter figure.