Charles River Q4 revenue slightly beats expectations

Overview

• Preclinical drug developer's Q4 revenue slightly beat analyst expectations, helped by impact of currency translation

• Adjusted EPS for Q4 beat analyst expectations

• Company expects organic revenue growth to return in second half of 2026

Outlook

• Charles River expects 2026 reported revenue to be flat to up 1.5%; non-GAAP EPS to be $10.70 to $11.20

• Company anticipates lower RMS revenue due to declines in large model sales

Result Drivers

• DSA AND MANUFACTURING IMPACT - Organic revenue decline driven by lower sales in DSA and Manufacturing segments

• INTANGIBLE ASSET IMPAIRMENTS - Non-cash impairments in Biologics Solutions and Cell Solutions affected GAAP results

• HIGHER COSTS IN DSA - Non-GAAP operating margin decreased due to higher study-related direct costs

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Charles River Laboratories International Inc is $220.00, about 38.8% above its February 17 closing price of $158.53

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nBw3RmmCTa

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