Charles River continues winning streak in fourth quarter
Charles River Laboratories, a provider of innovative drug development solutions for private and public healthcare organisations, academic institutions, and governmental agencies, reported yet another quarter of expectations-beating financial results at the end of last week. This marks the fourth straight quarter of outperformance for the company. Unsurprisingly, investors were keen to reward this strong showing on the market, continuing what has already been a great 2019 for the company’s share price.
Charles River’s share price has already appreciated by an impressive 25% year to date
Source: Yahoo Finance
Charles River outpaced analysts’ expectations (as well as its own year-ago performance) on earnings fairly easily. The company reported earnings of $1.49 per share against expectations of $1.39 per share, and in the year-ago quarter, the company delivered earnings of $1.40 per share. The company also managed a slight (1.94%) beat against the Street’s expectations on revenue, posting $601.53 million for the quarter.
In a statement, the company’s chairman, president and CEO, James C. Foster, said: “We believe our strong financial performance in 2018 and outlook for 2019 reflect continuing robust industry fundamentals and the benefit of actions we have taken to enhance our position as the leading early-stage CRO. By focusing on expanding our global scale and enhancing our scientific expertise, by improving our operating efficiency, and by providing a more seamless and flexible client experience, we are able to provide the individualized support which our clients require to expedite their drug research efforts and meet their extensive scientific needs.”
He also took the time to discuss an acquisition offer made on Citoxlab, a health and safety laboratory specialist. This follows a recent spate which has seen Charles River acquire both MPI Research and KWS BioTest. He said: “The proposed acquisition of Citoxlab would be another strategic expansion of our portfolio. We believe this acquisition would further strengthen our Discovery and Safety Assessment business and enhance our ability to achieve our long-term growth goals.”
Dominion holds Charles River Laboratories in its Global Trends Managed Fund.
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