Charles River Labs Revenue Dips in 2024

By Tamara Parker • Wednesday, February 19 15:42 • Permanent Link

Charles River Laboratories International, Inc. has reported its fourth-quarter and full-year 2024 results and provided guidance for 2025. The company's revenue for the fourth quarter was $1.00 billion, marking a 1.1% decrease from the same period in 2023. The full-year revenue for 2024 was $4.05 billion, which was a 1.9% decrease from 2023.

The fourth-quarter GAAP loss per share was $(4.22), while non-GAAP earnings per share were $2.66. For the full year, GAAP earnings per share were $0.20, and non-GAAP earnings per share were $10.32.

The company plans to repurchase approximately $350 million in common stock in 2025. The 2025 revenue outlook assumes relatively stable biopharmaceutical demand trends compared to the second half of 2024, with projected revenue growth/decrease on an organic basis ranging from (5.5)% to (3.5)%.

In the fourth quarter of 2024, the company reported a net loss available to common shareholders of $(215.7) million, or $(4.22) per share, compared to net earnings of $187.1 million, or $3.62 per diluted share, in the same period in 2023. However, on a non-GAAP basis, net income increased by 7.4% to $136.6 million, and diluted earnings per share increased by 8.1% to $2.66.

The company's segment results showed mixed performance. The Research Models and Services (RMS) segment saw an increase in revenue, while the Discovery and Safety Assessment (DSA) segment experienced a decrease. The Manufacturing Solutions (Manufacturing) segment showed an increase in revenue.

Looking at the full-year results, the company's revenue decreased by 1.9% to $4.05 billion in 2024. The GAAP operating margin decreased to 5.6% from 14.9% in 2023, and the non-GAAP operating margin decreased to 19.9% from 20.3%.

For 2025, the company expects a reported revenue growth/decrease of (7.0)% to (4.5%) and a non-GAAP EPS estimate of $9.10 to $9.60.

As a result of these announcements, the company's shares have moved 7.6% on the market, and are now trading at a price of $166.18. For more information, read the company's full 8-K submission here.

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