NYSE$CRL

Charles River Laboratories International Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported strong fourth-quarter results, exceeding prior expectations, with mid-teens revenue growth and double-digits earnings per share growth.

Charles River Laboratories reported a strong fourth quarter with revenue of $691.1 million, a 14.9% increase year-over-year. GAAP EPS was $1.61 and non-GAAP EPS was $2.01. The company's performance was driven by the breadth of its early-stage portfolio and investments in scientific capabilities.

  • Fourth-quarter revenue increased by 14.9% to $691.1 million.
  • Organic revenue growth was 7.4%, driven by all three business segments.
  • GAAP earnings per share were $1.61, a 33.1% increase year-over-year.
  • Non-GAAP earnings per share were $2.01, a 26.4% increase year-over-year.

Headline financials

Total Revenue

$691M

Previous: $602M+14.9%
EPS (adj)

$2.01

Previous: $1.49+34.9%
Net Income

$80.5M

Previous: $59.7M+34.9%
Operating Income

$109M

Previous: $102M+6.2%
Gross Profit

$262M

Previous: $226M+15.9%
Cash & Equivalents

$238M

Previous: $195M+21.8%
Total Assets

$4.69B

Previous: $3.86B+21.7%
Stock-Based Comp

$13.8M

Previous: $11.4M+21.0%

Revenue & EPS history

Charles River Labs · Revenue · Quarterly

$691M

Q4 2019+14.9%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Charles River Labs · $691M total across 3 segments · Q4 2019

  • Discovery & Safety Assessment
    $439M+22.6%
  • Research Models & Services
    $131M+2.2%
  • Manufacturing Solutions
    $121M+5.0%

Forward guidance

The Company is providing revenue, earnings per share, and free cash flow guidance for 2020. Earnings per share in 2020 are expected to benefit from higher revenue, driven primarily by continued robust client demand, and meaningful operating margin improvement.

Tailwinds

  • Revenue growth, reported 13.0% – 14.5%
  • Revenue growth, organic 7.75% – 8.75%
  • GAAP EPS estimate $5.20 – $5.35
  • Non-GAAP EPS estimate $7.45 – $7.60
  • Free cash flow $350 – $360 million

Headwinds

  • Contribution from acquisitions (4.0%) – (4.5%)
  • Favorable impact of foreign exchange (1.0%) – (1.5%)
  • Amortization of intangible assets $1.65 – $1.70
  • Charges related to global efficiency initiatives <$0.05
  • Acquisition-related adjustments ~$0.25

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 Q4 2019

Historical avgQ4 2019

+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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