Charles River Laboratories International, Inc. (NYSE:CRL) posted third-quarter results that beat analyst expectations, signaling stabilization across its early-stage drug development operations despite persistent headwinds in the broader healthcare sector.
The company reported adjusted earnings of $2.43 per share, exceeding the $2.34 consensus estimate, while revenue came in at $1.0 billion, just above forecasts of $987.43 million. Though this represented a 0.5% year-over-year decline from $1.01 billion, the performance showed relative resilience given industry softness. The stock traded flat following the release.
On an organic basis, revenue slipped 1.6%, reflecting a 1.3% boost from currency translation and a 0.2% reduction due to the sale of a small Safety Assessment site.
“Our solid third-quarter financial results demonstrate that the demand for our extensive portfolio of early-stage research and manufacturing products and services remains stable,” said James C. Foster, Chair, President and CEO. “We believe that positive signals are beginning to emerge which indicate that the industry may be on a path towards recovery; however, sustained improvement in our business will take time.”
Among business segments, Research Models and Services stood out, growing 7.9% to $213.5 million on stronger large model demand. However, Discovery and Safety Assessment revenue slipped 2.3% to $600.7 million, and Manufacturing Solutions fell 3.1% to $190.7 million.
The company narrowed its full-year 2025 adjusted EPS guidance to $10.10–$10.30, from $9.90–$10.30, and refined its organic revenue forecast to a 1.5–2.5% decline, versus the earlier 1.0–3.0% decrease projection.
“In this environment, we believe it is critical to remain intently focused on our strategy to further differentiate ourselves from the competition through our science and our innovative solutions,” Foster added.
GAAP operating margin improved to 13.3%, up from 11.6% in the same quarter last year, while non-GAAP operating margin was steady at 19.7%, compared with 19.9% in Q3 2024.