Lab services company Charles River Laboratories (NYSE:CRL) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Charles River Laboratories beat analysts’ revenue expectations last quarter, reporting revenues of $1.00 billion, down 2.7% year on year. It was a very strong quarter for the company, with a solid 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 4.4% 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 has a history of exceeding Wall Street’s expectations.
Looking at Charles River Laboratories’s peers in the drug development inputs & services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. West Pharmaceutical Services delivered year-on-year revenue growth of 8.7%, beating analysts’ expectations by 5.7%, and Fortrea reported a revenue decline of 1.4%, topping estimates by 3.1%. West Pharmaceutical Services traded up 2.2% following the results while Fortrea was down 17.7%.
Read our full analysis of West Pharmaceutical Services’s results here and Fortrea’s results here.
There has been positive sentiment among investors in the drug development inputs & services segment, with share prices up 2.4% on average over the last month. Charles River Laboratories is up 8% during the same time and is heading into earnings with an average analyst price target of $318.87 (compared to the current share price of $335.75).
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