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Lab services company Charles River Laboratories (NYSE:CRL) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Charles River Laboratories beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $1.00 billion, down 1.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ organic revenue estimates but a miss of analysts’ full-year EPS guidance estimates.
Is Charles River Laboratories a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Charles River Laboratories’s revenue to decline 6.9% year on year to $941.3 million, a further deceleration from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Charles River Laboratories has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.
Looking at Charles River Laboratories’s peers in the drug development inputs & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 9.3%, beating analysts’ expectations by 6%, and West Pharmaceutical Services reported flat revenue, topping estimates by 2%. Medpace traded down 2.1% following the results while West Pharmaceutical Services was also down 1.6%.
Read our full analysis of Medpace’s results here and West Pharmaceutical Services’s results here.
There has been positive sentiment among investors in the drug development inputs & services segment, with share prices up 4.4% on average over the last month. Charles River Laboratories is down 10.9% during the same time and is heading into earnings with an average analyst price target of $155.28 (compared to the current share price of $119.44).
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