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Wilmington, Massachusetts-based Charles River Laboratories International, Inc. (CRL) provides drug discovery, non-clinical development, and safety testing services. Valued at $8.6 billion by market cap, the company offers animal research models in research and development for new drugs, devices, and therapies, serving pharmaceutical and biotechnology companies, hospitals, and academic institutions worldwide. The pharmaceutical company is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect CRL to report a profit of $2.52 per share on a diluted basis, up 2.4% from $2.46 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CRL to report EPS of $10.18, down 4.6% from $10.67 in fiscal 2023. However, its EPS is expected to rise 1.9% year over year to $10.37 in fiscal 2025.
CRL stock has considerably underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares down 22.1% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) 2.9% gains over the same time frame.
CRL's underperformance may be driven by a potential ban on global trade of wild monkeys from Cambodia, posing a threat to the company's earnings, as noted by Evercore ISI.
On Nov. 6, CRL shares closed up more than 13% after reporting its Q3 results. Its adjusted EPS of $2.59 exceeded Wall Street expectations of $2.43. The company’s revenue was $1 billion, beating Wall Street forecasts of $977.2 million. CRL expects full-year adjusted EPS to be between $10.10 and $10.30.
Analysts’ consensus opinion on CRL stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, three advise a “Strong Buy” rating, 12 give a “Hold,” and two recommend a “Strong Sell.” CRL’s average analyst price target is $206.27, indicating a potential upside of 23.6% from the current levels.
