NYSE$CRL

Charles River Laboratories International Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Revenue increased, driven by DSA and RMS segments, but CDMO headwinds led to reduced guidance.

Charles River Laboratories reported a 6.4% increase in revenue for the second quarter of 2022, reaching $973.1 million. GAAP earnings per share were $2.13, and non-GAAP earnings per share were $2.77. The company has reduced its 2022 financial guidance due to headwinds in the CDMO business, unfavorable foreign exchange rates and rising interest rates.

  • Second-quarter revenue reached $973.1 million, up 6.4% year-over-year.
  • GAAP earnings per share were $2.13, a 23.8% increase from Q2 2021.
  • Non-GAAP earnings per share were $2.77, up 6.1% compared to the previous year.
  • Revised 2022 financial guidance due to CDMO headwinds and unfavorable foreign exchange and interest rates.

Headline financials

Total Revenue

$973M

Previous: $915M+6.4%
EPS (adj)

$2.77

Previous: $2.61+6.1%
Free Cash Flow

$109M

Previous: $88.4M+23.6%
Net Income

$109M

Previous: $88.4M+23.6%
Operating Income

$187M

Previous: $138M+36.2%
Gross Profit

$13.9M

Previous: $6.88M+102.0%
Cash & Equivalents

$200M

Previous: $223M-10.2%
Total Assets

$7.53B

Previous: $6.72B+12.0%
Stock-Based Comp

$14.9M

Previous: $17.1M-12.6%

Revenue & EPS history

Charles River Labs · Revenue · Quarterly

$973M

Q2 2022+6.4%vs Q2 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Charles River Labs · $973M total across 3 segments · Q2 2022

  • Discovery & Safety Assessment
    $592M+9.6%
  • Manufacturing Solutions
    $195M-1.5%
  • Research Models & Services
    $186M+5.5%

Forward guidance

Charles River is reducing its 2022 financial guidance due to headwinds associated with the CDMO business, foreign exchange, and interest expense.

Tailwinds

  • Company continues to expect the organic revenue growth rates for the DSA and RMS segments will be in line with the initial outlooks for the year.
  • Discretionary cost controls will partially offset headwinds.
  • Strong demand and price increases in the Safety Assessment and Discovery Services businesses.
  • Safety Assessment continues to benefit from a growing backlog.
  • Solid booking activity support the anticipated DSA growth acceleration in the second half of the year.

Headwinds

  • Reported revenue growth guidance is being reduced by 450 basis points.
  • Organic revenue growth guidance for 2022 is being reduced by 250 basis points.
  • GAAP earnings per share guidance is reducing.
  • Non-GAAP earnings per share guidance is reducing.
  • Headwinds associated with the CDMO business

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 2022

Historical avgQ2 2022

+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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