Charles River Laboratories International Inc.
) 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
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
We currently have a Neutral recommendation on Charles River. The
stock carries a Zacks #3 Rank, which translates into a short-term
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
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