Charles River beats the Street on top- and bottom-lines
Charles River Laboratories, a provider of equipment, consultation, and analytic laboratory services to the medical industry amongst others, reported better than expected results for the quarter ended March. This is the continuation of a strong run: Charles River has topped analysts’ estimates on earnings and revenue for the last four quarters. The company’s chairman, CEO, and president, James Foster, put this down to a “continuation of the robust business trends that we experienced throughout the second half of last year.”
Charles River Laboratories’ share price has risen by 19% year to date
Source: Yahoo Finance
Charles River said that earnings per share for its first quarter came in at $1.40. That’s a small but solid beat against analysts’ expectations of $1.38, as well as an increase on the comparable figure from a year ago which was $1.29. Its beat on revenue was even smaller: Charles River returned revenue for the quarter of $604.57 million, just 0.7% higher than the Street had predicted. It fared better against its own comparable figure of $493.97 million from last year, though.
On an earnings call, Foster detailed a cybersecurity issue that had been revealed the previous week, and which caused the company’s share price to trend down despite these strong earnings. He told listeners that “less than” 1% of the company’s clients’ data had been affected, and that impacts would be “minimal”.
Moving on, he also spent time discussing the acquisition of Citoxlab at the end of April, saying: “Last week's acquisition of Citoxlab helps us extend our leadership position in the Safety Assessment market by enhancing our presence in Continental Europe and North America and by strengthening our existing capabilities in general and specialty toxicology, agrochemical and preclinical medical device testing and niche discovery services, including drug transporter and drug-drug interaction research. Our efforts to build our global scale and enhance our scientific capabilities through internal investments and the acquisitions of WIL, MPI and now Citoxlab have enabled us to become our clients' partner of choice for early-stage drug research.”
Dominion holds Charles River in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.