Charles River Laboratories International (NYSE:CRL) Announces Quarterly Earnings Results

Charles River Laboratories International (NYSE:CRL) issued its earnings results on Wednesday. The medical research company reported $3.09 earnings per share for the quarter, beating analysts’ consensus estimates of $2.97 by $0.12, FiscalAI reports. Charles River Laboratories International had a positive return on equity of 15.75% and a negative net margin of 5.96%. The business had revenue of $982.73 million during the quarter, compared to analyst estimates of $960.36 million. During the same period in the previous year, the company posted $2.43 EPS. Charles River Laboratories International’s revenue was down 2.2% on a year-over-year basis.

Here are the key takeaways from Charles River Laboratories International’s conference call:

• Third-quarter revenue grew 4.7%, the strongest growth in three years, and adjusted EPS rose 27% to $3.09, both ahead of expectations. Charles River raised its 2026 organic revenue growth outlook to at least 1.5% and EPS guidance to $11.35–$11.55.
• Demand strengthened in DSA, with organic growth of 5.9%, bookings up 32% year over year, and book-to-bill of 1.09x for a fourth consecutive quarter above 1.0x. Management expects mid-single-digit DSA growth in Q4, while manufacturing returned to 7.4% organic growth.
• Operating margin expanded year over year, and the company expects further sequential improvement in Q4; its Create the Future program is projected to generate more than $300 million in cumulative savings over four years. Management expects 2027 margin improvement to exceed its previously discussed 75-basis-point annual average.
• RMS revenue declined 0.6% organically as weaker North American research-model demand and academic and government funding pressure offset growth in China. Management expects a modest reduction in RMS growth in Q4 and said this segment’s recovery may take time.
• DSA pricing remains a constraint: current growth is volume-driven, and reduced discounting has not yet benefited bookings or revenue. If trends hold, management does not expect pricing gains to affect revenue until at least the second half of 2027.

Charles River Laboratories International Stock Down 5.5%

Shares of NYSE CRL traded down $19.20 during mid-day trading on Wednesday, reaching $332.67. 1,080,759 shares of the company were exchanged, compared to its average volume of 959,766. Charles River Laboratories International has a 1 year low of $146.20 and a 1 year high of $379.63. The firm has a 50-day moving average of $303.97 and a 200 day moving average of $223.61. The stock has a market cap of $15.88 billion, a price-to-earnings ratio of -68.60, a P/E/G ratio of 3.16 and a beta of 1.36. The company has a quick ratio of 1.04, a current ratio of 1.35 and a debt-to-equity ratio of 0.92.

Key Charles River Laboratories International News

Here are the key news stories impacting Charles River Laboratories International this week:

• Positive Sentiment: Third-quarter adjusted earnings of $3.09 per share topped analysts’ roughly $2.97 estimate, while revenue of $982.7 million exceeded the $960.4 million consensus. Organic growth and margin expansion supported the results, and the company raised its 2026 outlook. Article: Charles River Q3 Earnings & Revenues Top Estimates, Stock Rises
• Negative Sentiment: Revenue was down 2.2% from a year earlier, tempering the positive earnings surprise. Zacks Research also downgraded CRL from “strong-buy” to “hold,” adding a cautious analyst signal. Article: Zacks Research stock recommendations
• Negative Sentiment: Despite the beat and raised outlook, reports noted that the stock declined, suggesting the strong results may not have met investor expectations or fully offset concerns about sales trends. Article: Charles River Labs drops despite its beat and raise

Insiders Place Their Bets

In other Charles River Laboratories International news, CAO Michael Knell sold 6,645 shares of the stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $260.38, for a total transaction of $1,730,225.10. Following the completion of the sale, the chief accounting officer directly owned 11,852 shares of the company’s stock, valued at approximately $3,086,023.76. This represents a 35.92% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, EVP Victoria L. Creamer sold 4,179 shares of the firm’s stock in a transaction dated Thursday, August 6th. The shares were sold at an average price of $259.16, for a total transaction of $1,083,029.64. Following the completion of the sale, the executive vice president owned 30,051 shares in the company, valued at $7,788,017.16. This represents a 12.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 113,123 shares of company stock valued at $33,864,118 in the last three months. 1.30% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Morgan Stanley lifted their price objective on Charles River Laboratories International from $300.00 to $340.00 and gave the company an “overweight” rating in a report on Monday, October 12th. Citigroup reiterated a “buy” rating on shares of Charles River Laboratories International in a report on Wednesday, July 8th. UBS Group started coverage on shares of Charles River Laboratories International in a research report on Wednesday, September 30th. They set a “buy” rating and a $357.00 target price on the stock. Robert W. Baird boosted their price target on shares of Charles River Laboratories International from $291.00 to $334.00 and gave the company an “outperform” rating in a report on Friday, September 25th. Finally, Deutsche Bank Aktiengesellschaft upped their price target on shares of Charles River Laboratories International from $300.00 to $320.00 and gave the stock a “buy” rating in a research report on Friday, September 25th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $302.33.

About Charles River Laboratories International

Charles River Laboratories International, Inc is a contract research and laboratory services company that supports pharmaceutical, biotechnology, medical device and academic research organizations. The company provides products and services used throughout the drug-development process, from early discovery and research through preclinical testing and manufacturing support.

Its offerings include research models, laboratory animal management, discovery and safety assessment services, toxicology testing, bioanalysis, and support for biologic, cell and gene therapy programs.