Earnings season can mean big things for stocks, including huge upswings or downside plunges. Charles River Laboratories (NYSE:CRL) found out as much today when it brought out its earnings report and future productions. The news was enough to send Charles River careening downward in Wednesday afternoon trading.
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The good news for Charles River came with its earnings report. Not only did it post a win on earnings, it also landed a win with revenue too. Earnings came in at $2.98 per share, readily beating estimates that called for $2.75. It also handily walked over the earnings per share figures from the same time last year, which stood at $2.49. Charles River posted revenue of $1.1 billion for the quarter, beating estimates by 5.52%.
However, the bad news came from two angles. First, there was the matter of future projections. Charles River expects between 1.5% and 4.5% revenue growth, which likely wasn’t that impressive to investors. Second, there was the matter of the monkey troubles. The Department of Justice in the United States is currently investigating several shipments of non-human primates (NHPs) from a Cambodian firm to Charles River. Charles River then suspended its dealings with the Cambodian operation. That’s a move that will cost the company between $80 million and $160 million in sales, according to Evercore ISI analyst Elizabeth Anderson.
Meanwhile, Charles River insiders don’t seem too confident, based on insider trading reports. Indeed, Insider confidence in Charles River is currently considered Negative, as they sold a combined total of $1.8 million in shares just in the last three months.
