Charles River Laboratories
) reported second quarter 2013 earnings (excluding special items)
of 73 cents per share, above the Zacks Consensus Estimate of 71
cents, but down 2.7% year over year.
Charles River's net sales increased 2.9% year over year to
$292.9 million in the second quarter of 2013. However, net sales
missed the Zacks Consensus Estimate of $295 million.
Foreign currency movements negatively impacted sales by 1.1%
in the second quarter of 2013.
Quarter in Detail
Charles River operates through two segments -- Research Models
& Services (RMS) and Preclinical Services (PCS).
Revenues from the RMS segment were $179.0 million in the
second quarter of 2013, up 3.1% from the year-ago quarter.
Foreign currency movement hurt sales by 1.5% in the reported
quarter. Excluding this impact, RMS segment revenues increased by
5.5% year over year.
The increase in RMS segment sales was due to the performance
of the Endotoxin and Microbial Detection (EMD) business and the
Accugenix and Vital River acquisitions.
Revenues from the PCS segment were $114.0 million in the
second quarter, up 2.6% year over year with performance being
driven by higher sales to large biopharmaceutical as well as
mid-tier clients mainly due to market share gains.
During the second quarter of 2013, Charles River repurchased
389,000 shares worth $16.6 million, subsequent to which the
company has $31.8 million remaining under its $750 million
Moreover, the Board of Directors increased the stock
repurchase authorization by $100 million on Jul 30, 2013.
Outlook for 2013 Backed
Charles River maintained its guidance for 2013. The company
continues to expect adjusted earnings per share between $2.80 and
$2.90 per share. The Zacks Consensus Estimate of $2.82 per share
is within the company's guidance range.
Charles River expects sales growth of 3.0% - 5.0%. On a
constant currency basis, sales are still expected to grow in the
range of 4.0% -6.0%.
Currently, Charles River carries a Zacks Rank #3 (Hold). Right
Parexel International Corporation
) look better placed with a Zacks Rank #2 (Buy).
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