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Dec 28, 2024
Charles River Labs Q4 2024 Earnings Report
Charles River Labs reported a revenue decline and a GAAP net loss in Q4 2024 due to goodwill impairment but saw adjusted earnings growth.
Key Takeaways
Charles River Labs reported Q4 2024 revenue of $1.00 billion, a 1.1% YoY decline, primarily due to weak performance in the DSA and RMS segments. The company posted a GAAP net loss of $215.7 million, largely driven by a $215 million goodwill impairment in the Biologics Solutions unit. However, non-GAAP earnings per share increased by 8.1% YoY, supported by cost reductions and higher Manufacturing segment revenue.
GAAP net loss of $215.7 million due to a $215 million goodwill impairment.
Revenue declined 1.1% YoY to $1.00 billion, with organic revenue down 1.8%.
Non-GAAP EPS rose 8.1% YoY to $2.66, driven by cost savings and higher Manufacturing revenue.
Manufacturing segment grew 1.6%, while DSA revenue declined 3.6% due to lower demand.
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 expects stable biopharmaceutical demand but anticipates revenue pressure due to lower DSA pricing and weaker CDMO performance.
Positive Outlook
- Cost savings initiatives expected to improve profitability.
- Manufacturing segment remains a key growth driver.
- Stable to slightly improved demand from small and mid-sized biotech clients.
- Company plans to repurchase approximately $350 million in stock.
- Non-GAAP EPS guidance of $9.10 - $9.60 for FY 2025.
Challenges Ahead
- Continued budget constraints from large biopharmaceutical clients.
- DSA segment expected to face pricing headwinds.
- CDMO business to experience lower commercial revenue.
- Organic revenue expected to decline 3.5% - 5.5% YoY.
- GAAP EPS guidance of $4.30 - $4.80 reflects ongoing revenue pressures.