Charles River Laboratories
) 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
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
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
Parexel International Corp.
ICON Public Limited Co.
) look attractive. All three carry a comparable Zacks Rank
CHARLES RVR LAB (CRL): Free Stock Analysis
ICON PLC (ICLR): Free Stock Analysis Report
MEDASSETS INC (MDAS): Free Stock Analysis
PAREXEL INTL CP (PRXL): Free Stock Analysis
To read this article on Zacks.com click here.