Charles River Laboratories Set to Release Q1 2025 Earnings Report
With a market cap of $6.7 billion, Charles River Laboratories International, Inc. (CRL) is a leading global contract research organization that supports drug discovery and development. The company operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions. These segments provide essential products, services, and testing solutions to a range of clients, including pharmaceutical companies, biotechnology firms, governments, and academic institutions worldwide.
Upcoming Earnings Release
CRL is set to announce its fiscal Q1 2025 earnings results before the market opens on Wednesday, May 7. Analysts anticipate that the company will report an adjusted profit of $2.06 per share, representing a decline of 9.3% from $2.27 per share reported in the same quarter last year. Notably, CRL has beaten Wall Street’s earnings estimates in each of the past four quarters.
Fiscal 2025 Projections
For the fiscal year 2025, experts forecast that the Wilmington, Massachusetts-based company will post adjusted EPS of $9.31, which reflects a 9.8% decline from $10.32 in fiscal 2024. However, adjusted EPS is expected to rebound, with an anticipated growth of 8.4% year-over-year to reach $10.09 in fiscal 2026.
Stock Performance Analysis
Over the last 52 weeks, CRL has declined 49.4%, underperforming the S&P 500 Index’s ($SPX) 8% gain and the Health Care Select Sector SPDR Fund’s (XLV) slight drop during the same timeframe.
On February 19, shares of CRL increased by 6.9% after the company exceeded Q4 2024 estimates, reporting adjusted earnings of $2.66 per share and revenue of $1 billion. Although the company forecasts a revenue decline of 7% to 4.5% for 2025, investors were optimistic following management’s remarks about improved biotech funding conditions in 2024, indicating stable to slightly improved demand trends. Additionally, impressive performance in the Discovery and Safety Assessment segment—where revenue reached $603.3 million—exceeded expectations and boosted the stock’s performance.
Analyst Ratings and Price Target
Analysts maintain a cautious outlook on Charles River Laboratories’ stock with an overall “Hold” rating. Among 15 analysts covering the stock, there is one “Strong Buy” and 14 “Holds.” The average price target for CRL is $149.64, suggesting a potential upside of 30.7% from its current price levels.
On the date of publication, Sohini Mondal did not hold any positions in the securities mentioned in this article. All information and data presented are for informational purposes only.
The views and opinions expressed herein belong to the author and do not necessarily reflect those of Nasdaq, Inc.
