Charles River outperformed Wall Street's forecasts for earnings and revenue.
American pharmaceutical firm Charles River Laboratories International, Inc. specializes in a range of preclinical and clinical laboratory, gene therapy, and cell therapy services for the pharmaceutical, medical device, and biotechnology sectors.
Leading pharmaceutical, biotechnology, agrochemical, governmental, and academic organizations from all over the world are among its clients. The business works in over 20 countries, has more than 110 locations and has +20,000 employees worldwide. Due to the company's extensive portfolio, they were able to support the development of almost 86% of FDA-approved medications in 2021.
CRL 3Q22
On November 2nd, the company posted third-quarter results. Earnings at Charles River were $134.7 million, or $2.63 per share. Even though this was down from the same time last year, results came in easily above the average analyst's adjusted earnings expectation of $2.49 per share. Revenue for the third quarter was $989.2 million, up 10.4% from the same period last year. The consensus Wall Street revenue projection of $970.4 million was surpassed by this amount. According to generally accepted accounting standards, the business reported Q3 earnings of $96.5 million, or $1.88 per share (GAAP). Charles River reported non-GAAP earnings of $134.7 million, or $2.63 per share. Even though this was down from the same time last year, it's still above the average analyst's adjusted earnings expectation of $2.49 per share.
Charles River updated its full-year 2022 estimates with the company now anticipating sales growth of between 10% and 11% for the entire year. It had previously predicted between 9% and 11% sales growth. It is anticipated that non-GAAP profits per share will range between $10.80 and $10.95. Prior forecasts called for non-GAAP EPS to range between $10.70 and $10.95.
Expansion of Cell Therapy Contract in Memphis Facility
On November 7th, Charles River announced the growth of its Memphis, Tennessee, cell therapy contract development and manufacture (CDMO) plant. With an additional nine (9) cutting-edge processing suites to go along with the existing 16 cleanrooms, the enlarged area is appropriate for the fabrication of both clinical and commercial cell therapies. The Memphis GMP CDMO facility supports the production of both commercial and early- and late-phase clinical cell and gene therapies. Charles River greatly increased the scope of its cell and gene therapy business by acquiring Cognate BioServices, Cobra Biologics, and Vigene Biosciences in 2021, adding end-to-end CDMO capabilities (plasmid DNA, viral vector, and cellular therapies). These skills form a "concept-to-cure" cell and gene therapy portfolio when combined with Charles River's historical services.
“This expansion builds on the Memphis site’s demonstrable expertise and commitment to supporting cell and gene therapy clients from early target identification through clinical and commercial-scale manufacturing. We look forward to continuing close partnerships with our clients and supporting projects to bring these potentially curative therapies to patients.”
The suites are set up for high-volume production with options for dual production lines for late-stage clinical- and commercial manufacturing, and they use advanced cleanroom facility technology and design to be fully compliant with current good manufacturing practices (GMP) and international regulatory standards. The Memphis CDMO facility expansion enables more cell therapy companies to streamline and expedite their programs to commercialization with a single partner, increasing access to crucial revolutionary medicines for patients around the world.
AI Trading
The main advantage of using AI for stock market research is that it can examine more assets objectively and continuously at all times of the day. We can improve decision-making, outcome modeling and forecasting, and market information by combining big data analytics with our AI prediction system.
Here is a stock recommendation from our biweekly (14-day) prediction, which was made public on Tuesday, November 1. Subscribe to our newsletter to have access to our insider information on the market.
Click here to see the original forecast published on November 1st, 2022.
CRL stock remained in our forecast including in the November 9th, 2022 forecast generating even further profits. When you view your forecasts published daily, you can recognize better opportunities by looking for repetition of certain stock picks repeatedly remaining in the forecast for the same time frame. Another indicator is when you see the stock pick appear in multiple forecasted time frames, especially over multiple forecasts published each morning EST.
Click here to see the original biweekly forecast published on November 9th, 2022.
Both stock forecasts show the corresponding Signal Confidence (SC), which you can see slowly decreasing respectively. These extraordinarily complex mathematical functions for statistical programming and modeling, when combined with machine learning, are capable of comparing their current coefficients and algorithms to newly added data, and then adapting to improve the models' accuracy through a process of validation and reflection. The Signal Confidence (SC), which is calculated by the AI system based on the historical accuracy of each prior financial asset forecast in conjunction with factors relevant to current market circumstances, is given as a percentage out of 100%.
Stock Ticker | Open: Nov 1, 2022 | Close: Nov 23, 2022 | ROI% |
Charles River Laboratories International, Inc. (CRL) | $216.99 | $241.08 | 11.10% |
The ROI from the first biweekly forecast November 1st - November 15th, 2022 was 15.24%, while the second biweekly forecast shown above from November 9th - November 23rd, 2022 was 9.32%. Together on this shorter-term trade, subscribers would already have netted a profit of 11.10%, or $24.09 per share so far this month. Always exercise discretion when studying the market. Prior to putting any financial plans into action, you should always conduct your own due diligence and seek assistance from a certified financial advisor.
Enhanced Market Intelligence
Finding market opportunities is made easier by using our AI system. It doesn't tell you what to do. It tells you where to look. Our skilled team of analysts carefully verifies the AI outputs and enhances this market research with a human touch, providing our subscribers with enhanced market intelligence. If you would like the AI advantage working for you, then you should subscribe today!
Life is better when you can be bullish.
Sources: 1. criver.com, "About Us" (2022)
2. Investor Relations Charles River, "Charles River Laboratories Announces Third-Quarter 2022 Results" (2022) 3. Investor Relations Charles River, "Charles River Announces Cell Therapy Manufacturing Capacity Expansion, Reinforcing Commitment to CDMO Clients" (2022)
Comentarios