NYSE$CRL

Charles River Laboratories International Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Charles River Labs reported revenue increase in the fourth quarter of 2022, driven by the DSA segment, and provided 2023 guidance.

Charles River Laboratories announced its Q4 and full-year 2022 results, with Q4 revenue reaching $1.10 billion, a 21.5% increase year-over-year. GAAP EPS was $3.65, and non-GAAP EPS was $2.98. The company provided 2023 guidance, noting challenges with NHP supply but solid business fundamentals.

  • Fourth-quarter revenue reached $1.10 billion, up 21.5% year-over-year.
  • GAAP earnings per share were $3.65, a 36.7% increase from Q4 2021.
  • Non-GAAP earnings per share were $2.98, up 19.7% from Q4 2021.
  • The company is managing challenges related to NHP supply constraints.

Headline financials

Total Revenue

$1.1B

Previous: $905M+21.5%
EPS (adj)

$2.98

Previous: $2.49+19.7%
Net Income

$189M

Previous: $140M+35.2%
Operating Income

$164M

Previous: $173M-5.2%
Gross Profit

$399M

Previous: $347M+14.9%
Cash & Equivalents

$234M

Previous: $241M-3.0%
Total Assets

$7.6B

Previous: $7.02B+8.2%
Stock-Based Comp

$22.1M

Previous: $19.2M+15.0%

Revenue & EPS history

Charles River Labs · Revenue · Quarterly

$1.1B

Q4 2022+21.5%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Charles River Labs · $1.1B total across 3 segments · Q4 2022

  • Discovery & Safety Assessment
    $692M+29.5%
  • Manufacturing Solutions
    $212M+3.3%
  • Research Models & Services
    $196M+18.4%

Forward guidance

Charles River provided financial guidance for 2023, reflecting the impact of NHP supply constraints, which are expected to reduce consolidated revenue growth by approximately 200 to 400 basis points.

Tailwinds

  • Actions to improve the performance of CDMO business gain traction, which is expected to result in higher growth in the Manufacturing segment.
  • Foreign exchange is projected to benefit reported revenue growth by up to 50 basis points.
  • Foreign exchange is projected to benefit earnings per share by up to $0.25.
  • The Company is focused on continuing to execute its strategy, drive growth and generate greater efficiency
  • The Company will enhance its position as the scientific partner of choice to accelerate biomedical research and therapeutic innovation

Headwinds

  • NHP supply constraints are expected to reduce consolidated revenue growth forecast by approximately 200 to 400 basis points.
  • NHP supply constraints will pressure the DSA segment’s revenue growth rate in 2023.
  • A higher tax rate will reduce earnings per share.
  • Increased interest expense will reduce earnings per share.
  • The impact of the divestiture of the Avian Vaccine business will reduce earnings per share.

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 2022

Historical avgQ4 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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