Tuesday, Charles River Laboratories Int'l Inc. (CRL) reported that its first quarter profit declined from last year, hurt by a 10.7% fall in revenues. However, earnings excluding special items came in ahead of the Street's estimate. Further, the company reiterated its fiscal 2009 guidance.
The Wilmington, Massachusetts-based company reported net income for the first quarter of $25.4 million or $0.38 per share, compared to $44.1 million or $0.63 per share in the year-ago quarter.
On a non-GAAP basis, net income was $38.2 million or $0.58 per share, lower than $50.8 million or $0.72 per share reported for the same period in 2008.
On average, twelve analysts polled by Thomson Reuters expected the company to earn $0.53 per share for the quarter. Analysts' estimates typically exclude special items.
Sales for the quarter decreased 10.7% to $301.5 million from $337.7 million in the prior-year quarter. Ten analysts had a revenue consensus of $305.23 million for the first quarter.
Sales declined in both the Research Models and Services and Preclinical Services segments, driven by the negative impact of foreign exchange and softer market demand for the company's broad portfolio of products and services, as pharmaceutical and biotechnology clients reprioritize their drug development pipelines and restructure their operations. Foreign currency translation reduced net sales by 5.8%.
Sales for the Research Models segment were $161.5 million in the first quarter of 2009, a decrease of 4.2% from $168.6 million in the first quarter of 2008. First-quarter 2009 net sales for the Preclinical Services segment were $140.0 million, a decrease of 17.2% from $169.1 million in the first quarter of 2008.
Cost of products sold and services provided eased to $193.31 million from $207.31 million in the same quarter last year. However, Selling, general and administrative expenses rose to $62.18 million from $59.32 million in the first quarter of 2008. Looking ahead to the full year 2009, the company reaffirmed its previously announced guidance and now expects net sales to decline in the range of 2% - 7%. Earnings are expected to be in the range of $1.86 - $2.16 per share, while on a non-GAAP basis, earnings are expected to be in the range of $2.30 - $2.60 per share.
Analysts currently expect the company to earn $2.38 per share on revenue of $1.27 billion for the full year.
CRL closed Tuesday's regular trading at $27.83, down $0.20 or 0.71% on a volume of 2.18 million shares. However, the stock gained $2.33 or 8.37% in the after-hour trade.
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