Stock of the Day

September 24, 2020

Charles River Laboratories International (CRL)

$282.23
-$6.01 (-2.1%)
Market Cap: $13.47B

About Charles River Laboratories International

Charles River Laboratories International, Inc. provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodents, and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening pre-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of preclinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products. This segment also offers specialized testing of biologics that are outsourced by pharmaceutical and biotechnology companies. It also provides contract vivarium operation services to biopharmaceutical clients. The company was founded in 1947 and is headquartered in Wilmington, Massachusetts.

Today's Trend

Charles River Laboratories International, Inc. (NYSE: CRL) is facing mixed investor signals. Longer-term earnings revisions and a potential vaccine-related collaboration are supportive, while an insider sale and modest reductions to several near-term EPS forecasts may be weighing on sentiment. The stock remains near its 52-week high, which could also encourage profit-taking.

  • Long-term earnings outlook improved. Zacks Research raised its EPS forecasts for fiscal 2026 to $11.15 from $10.91, fiscal 2027 to $12.49 from $12.11, and fiscal 2028 to $13.82 from $13.01. Estimates also increased for several future quarters, signaling greater confidence in CRL’s longer-term growth prospects.
  • Enterovirus vaccine collaboration could generate future demand. Medigen has partnered with Charles River in an effort to bring an enterovirus vaccine to global markets. The initiative could create additional opportunities for CRL’s contract research, testing, and development services. Medigen links up with Charles River in push to take enterovirus vaccine global
  • Recent operating results provide a mixed backdrop. CRL’s latest quarterly EPS of $3.02 exceeded the $2.77 consensus estimate, and revenue reached approximately $1 billion. However, revenue declined 2.7% year over year, while the company’s full-year 2026 EPS guidance remains $11.15-$11.45, close to the analyst consensus.
  • Director sold a sizable stake. James C. Foster sold 33,561 shares for about $10.1 million at an average price of $300, reducing his direct ownership by 51.5%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which makes it a less definitive bearish signal, but the size of the sale may pressure investor sentiment. SEC insider transaction filing
  • Some near-term estimates were lowered. Zacks trimmed its EPS forecasts for the third and fourth quarters of 2026, the first quarter of 2027, and the fourth quarter of 2027. These modest cuts suggest near-term uncertainty despite the stronger full-year and longer-term projections.

Recent News