European Investor
19 Feb 2025, 17:31
Charles River Laboratories reported mixed financial results for the fourth quarter and full-year 2024, with total annual revenue decreasing 1.9% to $4.05 billion. The company faced challenges in its Discovery and Safety Assessment (DSA) and Research Models and Services (RMS) segments, while its Manufacturing Solutions segment showed modest growth.
For the fourth quarter, revenue declined 1.1% year-over-year to $1.00 billion, with organic revenue contracting by 1.8%. A non-cash goodwill impairment of $215 million in the Biologics Solutions unit resulted in a GAAP net loss of $215.7 million, or $(4.22) per share. On a non-GAAP basis, net income increased 7.4% to $136.6 million, with earnings per share rising to $2.66 from $2.46 in the prior-year quarter.
Full-year GAAP earnings per share dropped sharply to $0.20 from $9.22 in 2023, primarily due to impairment charges and lower earnings from venture capital investments. However, non-GAAP earnings per share declined only 3.3% to $10.32, reflecting cost-saving initiatives and improved performance in Manufacturing Solutions, which saw a 6.6% revenue increase and a higher operating margin.
Looking ahead to 2025, the company expects continued pressure from biopharmaceutical clients' restructuring and pipeline reprioritization efforts but sees stabilizing demand trends, particularly among small and mid-sized biotech firms. To enhance shareholder value, Charles River plans approximately $350 million in stock repurchases while continuing efforts to improve efficiency and profitability.
For the fourth quarter, revenue declined 1.1% year-over-year to $1.00 billion, with organic revenue contracting by 1.8%. A non-cash goodwill impairment of $215 million in the Biologics Solutions unit resulted in a GAAP net loss of $215.7 million, or $(4.22) per share. On a non-GAAP basis, net income increased 7.4% to $136.6 million, with earnings per share rising to $2.66 from $2.46 in the prior-year quarter.
Full-year GAAP earnings per share dropped sharply to $0.20 from $9.22 in 2023, primarily due to impairment charges and lower earnings from venture capital investments. However, non-GAAP earnings per share declined only 3.3% to $10.32, reflecting cost-saving initiatives and improved performance in Manufacturing Solutions, which saw a 6.6% revenue increase and a higher operating margin.
Looking ahead to 2025, the company expects continued pressure from biopharmaceutical clients' restructuring and pipeline reprioritization efforts but sees stabilizing demand trends, particularly among small and mid-sized biotech firms. To enhance shareholder value, Charles River plans approximately $350 million in stock repurchases while continuing efforts to improve efficiency and profitability.
