Post Earnings Coverage as Charles River Laboratories’ Revenue Surged 25.6%, non-GAAP EPS Jumped 32%

Upcoming AWS Coverage on DexCom Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 30, 2017 / Active Wall St. announces its post-earnings coverage on Charles River Laboratories International, Inc. (NYSE: CRL). The Company posted its first quarter fiscal 2017 financial results on May 10, 2017. The medical research equipment and services provider outperformed top- and bottom-line expectations. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Charles River Laboratories International’s competitors within the Medical Laboratories & Research space, DexCom, Inc. (NASDAQ: DXCM), reported on May 03, 2017, its unaudited financial results as of and for the quarter ended March 31, 2017. AWS will be initiating a research report on DexCom in the coming days.

Today, AWS is promoting its earnings coverage on CRL; touching on DXCM. Get our free coverage by signing up to:
http://www.activewallst.com/register/.

Earnings Reviewed

Charles River Laboratories’ revenue from continuing operations surged 25.6% to $445.8 million compared to $354.9 million in Q1 2016. The acquisitions of WIL Research, Agilux Laboratories, and Blue Stream Laboratories contributed 19.5% to consolidated Q1 2017 revenue growth, both on a reported basis and in constant currency. The Company’s revenue numbers exceeded analysts’ consensus of $438.1 million.

On a GAAP basis, Charles River Laboratories’ net income from continuing operations attributable to common shareholders was $46.8 million for Q1 2017, up 25.9% from $37.2 million for Q1 2016. On a per share basis, the diluted earnings per share were $0.97, growing 24.4% compared to $0.78 for the prior year’s corresponding quarter. The Company stated that the divestiture of the Contract Development and Manufacturing (CDMO) business, which was completed on February 10, 2017, reduced GAAP earnings per share by $0.15 (net).

On a non-GAAP basis, Charles River Laboratories’ net income from continuing operations surged 34.4% to $62.6 million compared from $46.5 million for the year ago same period. First-quarter diluted earnings per share on a non-GAAP basis were $1.29, an increase of 31.6% from $0.98 per share for Q1 2016. Both the GAAP and non-GAAP earnings per share increases were driven primarily by the acquisition of new businesses, notably WIL Research, as well as higher revenue for legacy operations. Earnings per share in Q1 2017 also included a gain from the Company’s venture capital investments, which contributed $0.05 per share compared to a $0.04 gain for Q1 2016. The Company’s earnings numbers came in ahead of Wall Street’s expectations of $1.14 per share.

Segment Results

During Q1 2017, Charles River Laboratories’ revenue from the Research Models and Services (RMS) segment was $127.2 million, an increase of 3.1% from $123.3 million in Q1 2016. Organic revenue growth was 4.7%, driven by higher revenue for both the Research Models and Research Model Services businesses. The RMS segment’s GAAP operating margin increased to 29.7% in the reported quarter from 29.5% in the prior year’s same quarter. On a non-GAAP basis, the operating margin was 30.1%, unchanged on a y-o-y basis.

For Q1 2017, revenue from Charles River Laboratories’ Discovery and Safety Assessment (DSA) segment surged 44.4% to $227.8 million compared to $158.0 million in Q1 2016. Growth was driven primarily by the acquisitions of WIL Research and Agilux Laboratories, which contributed 41.6% to DSA revenue growth. Organic revenue growth was 5.1%, as improvement in the legacy Safety Assessment business was partially offset by lower revenue for the legacy Discovery Services business.

In Q1 2017, the DSA segment’s GAAP operating margin decreased to 17.0% from 19.5% in Q1 2016. The GAAP operating margin decline was due in part to amortization of intangible assets related to acquisitions. On a non-GAAP basis, the operating margin decreased to 20.9% from 23.3% in the year earlier comparable quarter.

Charles River Laboratories’ revenue for the Manufacturing segment was $90.8 million in Q1 2017, reflecting an increase of 23.5% from $73.5 million in Q1 2016. The acquisitions of Blue Stream Laboratories and WIL Research’s CDMO business contributed 4.9% to manufacturing revenue growth in the reported quarter. The segment’s organic revenue increased 20.6% on y-o-y basis, driven primarily by robust growth in the Microbial Solutions and Biologics Testing Solutions businesses.

For Q1 2017, the Manufacturing segment’s GAAP operating margin increased to 29.3% from 26.7% in Q1 2016. On a non-GAAP basis, the operating margin increased to 33.2% from 31.3% in the prior year’s same period. The Company noted that both the GAAP and non-GAAP operating margin improvement was driven by leverage from higher revenue in the Microbial Solutions and Biologics Testing Solutions businesses.

Stock Repurchase Update

During Q1 2017, Charles River Laboratories reinitiated stock repurchases activity, repurchasing 363,000 shares for a total of $32.1 million. As of April 01, 2017, the Company had $37.6 million remaining on its authorized stock repurchase program. On May 09, 2017, the Company’s Board of Directors increased the stock repurchase authorization by $150 million, to an aggregate amount of $1.3 billion.

Guidance

Charles River Laboratories announced that it is increasing the top-end of its non-GAAP earnings per share guidance range, primarily to reflect the higher-than-expected excess tax benefit associated with stock compensation with the Company expecting full-year earnings in the range of $5.00 to $5.15 per share. Charles River Laboratories is maintaining its revenue guidance of revenue growth in the band of 7.5% to 9.0%.

Stock Performance

At the close of trading session on Friday, May 26, 2017, Charles River Labs’ stock price slightly rose 0.37% to end the day at $92.60. A total volume of 195.10 thousand shares were exchanged during the session. Charles River Labs’ stock price surged 3.42% in the last three months, 27.50% in the past six months, and 8.28% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 21.54%. The stock currently has a market cap of $4.39 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 464425