Lab services company Charles River Laboratories (NYSE: CRL) will be reporting results this Wednesday before the bell. Here’s what to look for.
Charles River Laboratories beat analysts’ revenue expectations last quarter, reporting revenues of $995.8 million, up 1.2% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
Is Charles River Laboratories a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Charles River Laboratories’s revenue to decline 5.1% year on year, a deceleration from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Charles River Laboratories rarely misses Wall Street’s revenue estimates.
Looking at Charles River Laboratories’s peers in the drug development inputs & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. UFP Technologies delivered year-on-year revenue growth of 15.1%, beating analysts’ expectations by 9.1%, and Fortrea reported a revenue decline of 4.5%, topping estimates by 4.7%. Fortrea traded down 7.8% following the results.
Read our full analysis of UFP Technologies’s results here and Fortrea’s results here.
Investors in the drug development inputs & services segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Charles River Laboratories’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $228.50 (compared to the current share price of $229.69).
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