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Jun 25, 2022
Charles River Labs Q2 2022 Earnings Report
Revenue increased, driven by DSA and RMS segments, but CDMO headwinds led to reduced guidance.
Key Takeaways
Charles River Laboratories reported a 6.4% increase in revenue for the second quarter of 2022, reaching $973.1 million. GAAP earnings per share were $2.13, and non-GAAP earnings per share were $2.77. The company has reduced its 2022 financial guidance due to headwinds in the CDMO business, unfavorable foreign exchange rates and rising interest rates.
Second-quarter revenue reached $973.1 million, up 6.4% year-over-year.
GAAP earnings per share were $2.13, a 23.8% increase from Q2 2021.
Non-GAAP earnings per share were $2.77, up 6.1% compared to the previous year.
Revised 2022 financial guidance due to CDMO headwinds and unfavorable foreign exchange and interest rates.
Charles River Labs
Charles River Labs
Charles River Labs Revenue by Segment
Revenue by Segment
Research Models and Services Revenue
CapyFin.comDiscovery and Safety Assessment Revenue
CapyFin.comManufacturing Solutions Revenue
CapyFin.com Forward Guidance
Charles River is reducing its 2022 financial guidance due to headwinds associated with the CDMO business, foreign exchange, and interest expense.
Positive Outlook
- Company continues to expect the organic revenue growth rates for the DSA and RMS segments will be in line with the initial outlooks for the year.
- Discretionary cost controls will partially offset headwinds.
- Strong demand and price increases in the Safety Assessment and Discovery Services businesses.
- Safety Assessment continues to benefit from a growing backlog.
- Solid booking activity support the anticipated DSA growth acceleration in the second half of the year.
Challenges Ahead
- Reported revenue growth guidance is being reduced by 450 basis points.
- Organic revenue growth guidance for 2022 is being reduced by 250 basis points.
- GAAP earnings per share guidance is reducing.
- Non-GAAP earnings per share guidance is reducing.
- Headwinds associated with the CDMO business
Revenue & Expenses
Visualization of income flow from segment revenue to net income