Charles River Laboratorie (CRL) Misses Q2 EPS by 1c; Extends Agreement with AstraZeneca (AZN)
Charles River Laboratorie (NYSE: CRL) reported Q2 EPS of $0.96, $0.01 worse than the analyst estimate of $0.97. Revenue for the quarter came in at $339.6 million versus the consensus estimate of $338.3 million.
Charles River Laboratorie sees FY2015 EPS of $3.60-$3.70, versus the consensus of $3.64.
The company also announced announced that it has extended its initial three-year partnership with AstraZeneca (NYSE: AZN) for an additional five-year period. Under the agreement, which extends into 2020, Charles River retains its position as AstraZeneca’s preferred strategic partner for outsourced regulated safety assessment and development DMPK (drug metabolism and pharmacokinetics).
James C. Foster, Chairman, President and Chief Executive Officer, said, “We were very pleased with our second-quarter performance. Continued strong revenue growth for our Safety Assessment and Endotoxin and Microbial Detection businesses, coupled with stabilization of our research model business in North America and Europe, were the primary drivers of the 5.7% constant-currency revenue increase, and a 6% sequential revenue increase. Higher sales and operating efficiencies enabled us to achieve a 20% non-GAAP operating margin for the first time since 2008.”
“The second quarter also marked two notable developments: We renewed our successful strategic partnership with AstraZeneca for an additional five years, and made the decision to reopen our facility in Shrewsbury, Massachusetts. Both events are a testament to the confidence that clients place on our scientific expertise and the value of our focused, early-stage drug research portfolio.”
“Primarily as a result of the acquisition of Celsis, which closed on July 24, we are increasing our constant-currency revenue guidance for 2015 to a range of 8.0% to 9.5%, and our non-GAAP earnings per share guidance to a range of $3.60 to $3.70.”
For earnings history and earnings-related data on Charles River Laboratorie (CRL) click here.
