The earnings call presented a mixed picture with some positive aspects such as better-than-expected fourth-quarter performance, operating margin improvements, and a return to growth in biotech revenue. However, these were overshadowed by significant challenges, including projected revenue declines, particularly in the DSA segment, and difficulties in the CDMO business, leading to a cautious outlook for 2025.

Company Guidance

During the Charles River Laboratories earnings call for the fourth quarter of 2024, the company provided guidance for 2025, highlighting several key metrics and expectations. The overall revenue decline is anticipated to be between 4.5% and 7% on a reported basis, factoring in a foreign exchange headwind of over 1%, with an organic decline of 3.5% to 5.5%. This is attributed to a stabilizing DSA demand environment and lower commercial revenue in the CDMO business, reducing consolidated revenue by approximately 1%, alongside site consolidation actions contributing an additional 50 basis points reduction. The company expects non-GAAP earnings per share to range from $9.10 to $9.60. Cost-saving initiatives are projected to yield annualized savings of approximately $225 million by 2026, with $175 million realized in 2025. Operating margins are anticipated to be modestly lower than the 19.9% reported for 2024, primarily due to the inability to fully offset the decline in DSA segment revenue. Additionally, free cash flow for 2025 is expected to decrease to about $350 million from $501.6 million in 2024, driven by lower earnings and higher working capital needs.

Fourth Quarter Performance Exceeds Expectations

The fourth quarter of 2024 ended with a performance that was slightly better than expected, resulting in annual revenue and non-GAAP earnings per share higher than the guidance issued in November.

Operating Margin Improvement

The operating margin increased by 80 basis points year over year to 19.9% in the fourth quarter, driven by lower unallocated corporate costs and margin expansion in the manufacturing segment.

Biotech Client Revenue Growth

In the fourth quarter, revenue from biotech clients returned to growth for the first time since the third quarter of 2023.

Cost-Saving Initiatives

Restructuring initiatives are expected to yield annualized savings of approximately $225 million by 2026, with over $175 million realized in 2025.

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Charles River Labs (CRL) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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CRL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 08, 2025	2025 (Q1)	2.13 / -	2.27	―	―	―
Feb 19, 2025	2024 (Q4)	2.53 / 2.66	2.46	8.13% (+0.20)
Nov 06, 2024	2024 (Q3)	2.42 / 2.59	2.72	-4.78% (-0.13)
Aug 07, 2024	2024 (Q2)	2.39 / 2.80	2.69	4.09% (+0.11)
May 09, 2024	2024 (Q1)	2.06 / 2.27	2.78	-18.35% (-0.51)
Feb 14, 2024	2023 (Q4)	2.40 / 2.46	2.98	-17.45% (-0.52)
Nov 08, 2023	2023 (Q3)	2.36 / 2.72	2.63	3.42% (+0.09)
Aug 09, 2023	2023 (Q2)	2.64 / 2.69	2.77	-2.89% (-0.08)
May 11, 2023	2023 (Q1)	2.59 / 2.78	2.75	1.09% (+0.03)
Feb 22, 2023	2022 (Q4)	2.75 / 2.98	2.49	19.68% (+0.49)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CRL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 19, 2025	$154.39	$165.00	+6.87%
Nov 06, 2024	$188.68	$214.20	+13.53%
Aug 07, 2024	$228.80	$199.96	-12.60%
May 09, 2024	$235.29	$230.09	-2.21%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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