Charles River Laboratories ( CRL ) reported first
quarter 2013 earnings (excluding special items) of 63 cents per
share, missing the Zacks Consensus Estimate of 71 cents. Earnings
were roughly flat year over year.
Charles River's net sales of $291.2 million increased 1.8% year
over year in the first quarter of 2013. However, net sales missed
the Zacks Consensus Estimate of $294 million. Foreign currency
movements negatively impacted sales by 1.0% in the first quarter of
Quarter in Detail
Charles River operates through two segments -- Research Models
& Services (RMS) and Preclinical Services (PCS).
Revenues from the RMS segment were $182.5 million in the first
quarter of 2013, down 0.4% from the prior-year period.
Foreign currency movements hurt sales by 1.4% in the reported
quarter. Excluding this impact, RMS segment revenues increased by
1.0% year over year.
The increase in RMS segment was due to stronger sales for the
Endotoxin and Microbial Detection (EMD) business, which included
the acquisitions of Accugenix and Vital River.
Revenues from the PCS segment were $108.7 million in the first
quarter, up 5.8% year over year driven by increased sales to
strategic relationship clients and mid-tier clients.
During the first quarter of 2013, Charles River repurchased
shares worth $6.5 million (approximately 157,000 shares),
subsequent to which the company has $48.4 million remaining under
its $750 million repurchase program.
Outlook for 2013
Charles River updated its guidance for 2013. The company continues
to expect adjusted earnings per share between $2.80 and $2.90 per
share. The guidance excludes extraordinary charges primarily
related to the company's PCS facility in Massachusetts. The Zacks
Consensus Estimate of $2.85 per share is well within the company's
However, Charles River lowered its 2013 net sales guidance on a
reported basis due to the adverse impact of foreign exchange
translations. Sales growth is now expected to be around 3.0% - 5.0%
(previous projection: 4.0% - 6.0%). 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
now, Omnicare Inc. ( OCR ),
MedAssets, Inc. ( MDAS ) and
Parexel International Corporation ( PRXL ) look better
placed with a Zacks Rank #2 (Buy).CHARLES RVR LAB (CRL): Free Stock Analysis
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