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Investing.com -- Charles River Laboratories International, Inc. (NYSE:CRL) shares jumped 6.9% after the company reported second-quarter earnings on Wednesday that significantly exceeded analyst expectations and raised its full-year outlook.
The contract research organization posted adjusted earnings of $3.12 per share for the second quarter, handily beating the analyst consensus of $2.50.
Revenue came in at $1.03 billion, surpassing the expected $984.86 million and representing a slight 0.6% increase from $1.03 billion in the same quarter last year.
On an organic basis, revenue declined 0.5% when excluding the 1.2% positive impact from foreign currency translation.
"We are continuing to see clear signs that the biopharmaceutical demand is stabilizing, and in this environment, we are making gradual progress to return to organic revenue growth," said James C. Foster, Chair, President and Chief Executive Officer.
"This progress was demonstrated in our solid second-quarter financial performance, driven principally by favorable results in our DSA segment."
The company’s non-GAAP operating margin improved to 22.1% from 21.3% in the prior-year quarter, with margin improvements across all three business segments.
The Manufacturing Solutions segment showed the strongest performance with a 4.4% revenue increase, followed by Research Models and Services with a 3.3% gain, while Discovery (NASDAQ:WBD) and Safety Assessment revenue declined 1.5%.
Charles River raised its full-year 2025 guidance, now expecting adjusted earnings of $9.90 to $10.30 per share, up from its previous forecast of $9.30 to $9.80 and above the analyst consensus of $9.65.
The company also improved its organic revenue outlook, now projecting a decline of 1.0% to 3.0%, better than the previously expected 2.5% to 4.5% decrease.
In a positive legal development, the company announced that the U.S. Department of Justice has closed its investigation into Charles River’s non-human primate supply chain.
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