Charles River Laboratories International Inc.
(
CRL
) reported first quarter 2012 earnings (excluding special items) of
70 cents per share, above the Zacks Consensus Estimate of 65 cents,
and 14.8% above the year-ago earnings of 61 cents. Earnings were
boosted by a lower share count.
The company's quarterly revenue of $286 million remained flat
year over year. Higher sales in Research Models and Services (RMS)
segment was offset by a decline in Preclinical Services (PCS)
segment sales and foreign exchange (Fx) translation. Revenues came
in line with the Zacks Consensus Estimate.
Quarter in Detail
Charles Riveroperates through two segments - RMS and PCS.
Revenue from the RMS segment was $183.2 million in the first
quarter, up 5.6% from the prior-year period. Segment revenue was
boosted by strong sales of In Vitro and Avian products and RMS
services. Excluding the 0.9% loss from Fx, RMS segment revenue
moved up 6.5% year over year.
Revenue from the PCS segment was $102.8 million in the first
quarter, down 8.6% from the prior-year period (down 7.6% excluding
the negative impact of Fx). Unfavorable sales mix and lower
biopharmaceutical services (BPS) sales adversely affected revenue
performance.
During the first quarter of 2012, Charles River repurchased
shares worth $12.5 million and has $103.8 million remaining under
its $750 million repurchase program.
Outlook for 2012
Charles River reiterated its 2012 adjusted earnings guidance
range of $2.60-$2.70 per share, provided earlier in December 2011.
The Zacks Consensus Estimate of $2.68 per share is toward the
higher end of the company's guidance range. Net sales are expected
to grow in the range of 0% - 2%, with a negative Fx impact of
approximately 1%.
Our Recommendation
We currently have a Neutral recommendation on Charles River. The
stock carries a Zacks #3 Rank, which translates into a short-term
Hold rating.
Despite the consistent performance of the RMS segment, the PCS
business fails to show any definite sign of recovery, thus keeping
us on the sidelines.
CHARLES RVR LAB (CRL): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research