NYSE$CRL

Charles River Laboratories International Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Second quarter results reported an increase in revenue and GAAP earnings per share, driven by Discovery and Safety Assessment and Manufacturing Support segments.

Charles River Laboratories reported second-quarter revenue of $682.6 million, a 3.8% increase year-over-year. GAAP earnings per share were $1.34, while non-GAAP earnings per share were $1.58. The company increased its 2020 guidance and announced the proposed acquisition of Cellero.

  • Second-quarter revenue reached $682.6 million.
  • GAAP earnings per share were $1.34, and non-GAAP earnings per share were $1.58.
  • The company is increasing its 2020 guidance.
  • A proposed acquisition of Cellero in the high-growth cell therapy market was announced.

Headline financials

Total Revenue

$683M

Previous: $658M+3.8%
EPS (adj)

$1.58

Previous: $1.63-3.1%
Free Cash Flow

$67.4M

Previous: $43.7M+54.2%
Net Income

$67.4M

Previous: $43.7M+54.2%
Operating Income

$76.8M

Previous: $79.8M-3.8%
Gross Profit

$190K

Previous: $45K+322.2%
Cash & Equivalents

$402M

Previous: $201M+100.4%
Total Assets

$5.24B

Previous: $4.63B+13.3%
Stock-Based Comp

$13.1M

Previous: $16.5M-20.4%

Revenue & EPS history

Charles River Labs · Revenue · Quarterly

$683M

Q2 2020+3.8%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Charles River Labs · $683M total across 3 segments · Q2 2020

  • Discovery & Safety Assessment
    $443M+9.1%
  • Manufacturing Solutions
    $124M+6.5%
  • Research Models & Services
    $117M-14.4%

Forward guidance

The Company is increasing its 2020 financial guidance, which was previously provided on May 7, 2020, as a result of the better-than-expected second quarter performance and its expectations that the revenue loss from the COVID-19 pandemic will be approximately $100 million in 2020, which is favorable to its prior estimate of $135 to $215 million.

Tailwinds

  • Revenue growth, reported 7.5% – 9.0%
  • Revenue growth, organic 4.0% – 5.5%
  • GAAP EPS estimate $4.70 – $5.00
  • Non-GAAP EPS estimate $7.05 – $7.35
  • Free cash flow $350 – $365 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.7%

Avg return

30 days after

47%

32 / 68 earnings

Positive

+18.4%

Q1 2025

Best reaction

-13.3%

Q3 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.8%-9.0%-0.1%
Q4 2025-1.8%+3.1%-3.1%
Q3 2025-5.5%-5.0%+3.6%
Q1 2025+18.4%+24.0%+25.4%
Q4 2024+6.9%+10.4%+8.3%
Q3 2024+11.5%+17.0%+1.7%
Q2 2024-11.7%-15.1%-17.8%
Q1 2024-3.0%-1.0%-8.7%
Q4 2023+11.4%+11.2%+17.6%
Q3 2023-7.3%-7.0%+11.8%
Q2 2023+5.5%+5.2%-3.2%
Q1 2023+2.7%+1.0%+6.1%
Q4 2022-6.7%-9.0%-20.4%
Q3 2022+4.8%+9.0%+7.4%
Q2 2022-6.6%-9.4%-17.8%
Q1 2022-1.2%-8.9%-3.3%
Q4 2021-6.7%-6.1%-8.3%
Q3 2021-12.2%-13.4%-17.3%
Q2 2021-0.3%-0.4%+9.3%
Q1 2021+4.0%+3.2%-0.1%
Q4 2020+2.0%-1.1%-0.0%
Q3 2020+2.6%+7.0%+3.7%
Q2 2020+6.8%+7.3%+0.4%
Q1 2020+11.1%+12.0%+24.2%
Q4 2019+8.6%+11.9%-21.3%
Q3 2019-2.5%+1.1%+12.0%
Q2 2019-5.1%-10.3%-7.0%
Q1 2019-4.2%-4.1%-10.4%
Q4 2018+8.1%+9.0%+11.1%
Q3 2018+8.8%+6.8%+3.0%
Q2 2018-5.2%-6.6%-1.6%
Q1 2018+0.3%-1.0%+8.5%
Q4 2017+8.2%+6.0%+9.9%
Q3 2017-13.3%-14.3%-11.9%
Q2 2017-1.7%-0.2%+10.0%
Q1 2017-3.8%-2.3%+2.8%
Q4 2016+7.6%+7.3%+8.4%
Q3 2016-9.0%-5.1%-3.0%
Q2 2016-0.0%-3.1%-3.0%
Q1 2016+2.5%
Q4 2015+3.9%
Q3 2015+5.7%
Q2 2015+1.4%
Q1 2015-8.8%
Q4 2014+6.3%
Q3 2014-1.9%
Q2 2014+6.0%
Q1 2014-6.6%
Q4 2013-1.6%
Q3 2013-1.2%
Q2 2013+3.4%
Q1 2013-3.9%
Q4 2012+0.9%
Q3 2012-5.3%
Q2 2012+2.3%
Q1 2012+1.8%
Q4 2010-1.3%
Q4 2011-1.3%
Q3 2011-5.0%
Q2 2011-9.4%
Q1 2010-2.4%
Q1 2011-0.1%
Q4 2008-0.9%
Q3 2010-4.4%
Q3 2009-4.4%
Q2 2010+3.6%
Q4 2009+3.6%
Q2 2009+3.6%

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