Loading...
•
Dec 28, 2019
Charles River Labs Q4 2019 Earnings Report
Reported strong fourth-quarter results, exceeding prior expectations, with mid-teens revenue growth and double-digits earnings per share growth.
Key Takeaways
Charles River Laboratories reported a strong fourth quarter with revenue of $691.1 million, a 14.9% increase year-over-year. GAAP EPS was $1.61 and non-GAAP EPS was $2.01. The company's performance was driven by the breadth of its early-stage portfolio and investments in scientific capabilities.
Fourth-quarter revenue increased by 14.9% to $691.1 million.
Organic revenue growth was 7.4%, driven by all three business segments.
GAAP earnings per share were $1.61, a 33.1% increase year-over-year.
Non-GAAP earnings per share were $2.01, a 26.4% increase year-over-year.
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
The Company is providing revenue, earnings per share, and free cash flow guidance for 2020. Earnings per share in 2020 are expected to benefit from higher revenue, driven primarily by continued robust client demand, and meaningful operating margin improvement.
Positive Outlook
- Revenue growth, reported 13.0% – 14.5%
- Revenue growth, organic 7.75% – 8.75%
- GAAP EPS estimate $5.20 – $5.35
- Non-GAAP EPS estimate $7.45 – $7.60
- Free cash flow $350 – $360 million
Challenges Ahead
- Contribution from acquisitions (4.0%) – (4.5%)
- Favorable impact of foreign exchange (1.0%) – (1.5%)
- Amortization of intangible assets $1.65 – $1.70
- Charges related to global efficiency initiatives <$0.05
- Acquisition-related adjustments ~$0.25
Revenue & Expenses
Visualization of income flow from segment revenue to net income