Charles River Beats Earnings Estimates in Q4 - Analyst Blog


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Charles River Laboratories ( CRL ) reported fourth quarter 2013 earnings (excluding special items) of 73 cents per share, beating the Zacks Consensus Estimate of 68 cents and up 14.1% year over year.

Charles River's net sales increased 3.2% year over year to $289.2 million in the reported quarter, in line with the Zacks Consensus Estimate of $290 million.

Foreign currency movements negatively impacted sales by 0.5% in the fourth quarter of 2013.

Quarter in Detail

Charles River operates through two segments -- Research Models & Services (RMS) and Preclinical Services (PCS).

Sales from the RMS segment were $172.3 million in the fourth quarter of 2013, up 0.2% from the year-ago quarter. Foreign currency movement hurt sales by 0.8% in the reported quarter. The increase in RMS segment sales was driven primarily by the acquisitions of Vital River and Accugenix along with growth in the legacy Endotoxin and Microbial Detection (EMD) business.

Sales from the PCS segment were $117.0 million in the fourth quarter, up 0.8% year over year. The improvement in revenues was driven by higher sales to mid-tier clients mainly due to market share gains and improved client demand. Foreign currency movement hurt sales by 0.2% in the reported quarter.

During the fourth quarter of 2013, Charles River repurchased 1.5 million shares worth $77.2 million, subsequent to which the company has $139.1 million remaining under its $1.0 billion repurchase program.

2013 Results

Revenues came in $1.17 billion, up 3.2% from 2012, in line with the  Zacks Consensus Estimate. Earnings per share came in at $2.93 per share, up from $2.74 per share in 2012 and beating the Zacks Consensus Estimate of $2.88 per share.

2014 Earnings Guidance

Charles River provided its earnings guidance for 2013. The company expects adjusted earnings per share between $3.00 and $3.10. The earnings in 2014 are expected to benefit from higher sales and enhanced efficiency initiatives. The Zacks Consensus Estimate of $2.88 per share is much below the company's guidance range.

Charles River expects sales growth of 3.0%-5.0% in 2014.

Currently, Charles River carries a Zacks Rank #2 (Buy). Others stocks that look attractive include MedAssets, Inc. ( MDAS ), Parexel International Corp. ( PRXL ), and ICON Public Limited Co. ( ICLR ) look attractive.  All three carry a comparable Zacks Rank #2.



CHARLES RVR LAB (CRL): Free Stock Analysis Report

ICON PLC (ICLR): Free Stock Analysis Report

MEDASSETS INC (MDAS): Free Stock Analysis Report

PAREXEL INTL CP (PRXL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: EMD , CRL , ICLR , MDAS , PRXL


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