NYSE$CRL

Charles River Laboratories International Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Revenue increased and earnings per share rose due to higher revenue, operating margin improvement, and venture capital investment gains.

Charles River Laboratories reported strong third-quarter results with revenue of $743.3 million, an 11.3% increase from the previous year. GAAP earnings per share were $2.03, and non-GAAP earnings per share were $2.33. The company also increased its 2020 financial guidance.

  • Revenue increased by 11.3% year-over-year to $743.3 million, driven by growth in the Discovery and Safety Assessment and Manufacturing Support segments.
  • GAAP earnings per share increased by 39.0% year-over-year to $2.03, while non-GAAP earnings per share increased by 37.9% to $2.33.
  • The company's performance was bolstered by operating margin improvement and venture capital investment gains.
  • Charles River increased its 2020 financial guidance due to the better-than-expected third-quarter performance.

Headline financials

Total Revenue

$743M

Previous: $668M+11.3%
EPS (adj)

$2.33

Previous: $1.69+37.9%
Free Cash Flow

$103M

Previous: $72.8M+41.3%
Net Income

$103M

Previous: $72.8M+41.3%
Operating Income

$133M

Previous: $92.8M+43.0%
Gross Profit

$440K

Previous: $383K+14.9%
Cash & Equivalents

$243M

Previous: $165M+47.4%
Total Assets

$5.21B

Previous: $4.58B+13.8%
Stock-Based Comp

$16.9M

Previous: $14M+20.3%

Revenue & EPS history

Charles River Labs · Revenue · Quarterly

$743M

Q3 2020+11.3%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Charles River Labs · $743M total across 3 segments · Q3 2020

  • Discovery & Safety Assessment
    $461M+9.8%
  • Research Models & Services
    $152M+14.6%
  • Manufacturing Solutions
    $130M+12.9%

Forward guidance

The Company is increasing its 2020 financial guidance, which was previously provided on August 5, 2020, primarily as a result of the better-than-expected third quarter performance. The revenue loss from the COVID-19 pandemic will be approximately $70 million in 2020, which is favorable to its prior estimate of approximately $100 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 Q3 2020

Historical avgQ3 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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