Why Is Charles River (CRL) Down 6.8% Since Last Earnings Report?

It has been about a month since the last earnings report for Charles River Laboratories (CRL). Shares have lost about 6.8% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Charles River due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Charles River Laboratories International, Inc. before we dive into how investors and analysts have reacted as of late.

CRL Q4 Earnings & Revenues Beat, Margins Rise

Charles River Laboratories International, Inc. (CRL) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $2.39, down 10.2% year over year. The figure surpassed the Zacks Consensus Estimate by 2.51%.

On a GAAP basis, the company reported a loss of $5.62 per share compared with the year-ago quarter’s loss of $4.22.

The company reported a full-year 2025 EPS of $10.28, which decreased 0.4% from the prior-year level. The figure outpaced the Zacks Consensus Estimate by 0.6%.

CRL’s Revenues

Revenues totaled $994.2 million, which beat the Zacks Consensus Estimate by 0.84%. The top line fell 0.8% from the year-ago quarter’s level (down 2.6% organically, excluding the impact of foreign currency translation and the divestiture of a small Safety Assessment site in 2024).

The company reported full-year 2025 revenues of $4.02 billion, which decreased 0.9% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.2%.

CRL’s Q4 Segmental Performance in Detail

The company reports under three segments — Research Models and Services (“RMS”), Discovery and Safety Assessment (“DSA”) and Manufacturing Solutions.

RMS’ revenues totaled $206.3 million, up 1% year over year (down 0.9% organically). The organic decrease was mainly due to lower revenues for large research models and small research models in North America. Our model estimated RMS’ revenues to be $205.2 million in the fourth quarter.

DSA’s revenues amounted to $591.6 million, down 2% year over year and 3.3% organically. The organic decline in revenues was primarily due to lower sales volume for discovery services and also regulated safety assessment services. Our model projected revenues of $579.8 million for this segment.

Manufacturing Solutions’ revenues totaled $196.4 million, up 0.7% year over year (down 2.1% organically).

The organic decrease was mainly due to lower revenues in the CDMO business. Our model projected revenues to be $199.5 million for the fourth quarter.

CRL’s Margin Performance

The gross profit in the reported quarter was $414.4 million, up 8.8% from the prior-year quarter’s level. The gross margin of 41.7% rose 368 basis points (bps) year over year.

Selling, general & administrative expenses increased 0.2% year over year to $196.1 million. The adjusted operating profit totaled $218.3 million, reflecting a 17.8% jump from the prior-year quarter’s level. The adjusted operating margin expanded 347 bps to 22%.

CRL’s Liquidity Position

Charles River exited the fourth quarter of 2025 with cash and cash equivalents of $213.8 million compared with $194.6 million at the end of 2024.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $737.6 million compared with $734.6 million a year ago.

Charles River’s 2026 Guidance

The company issued a full-year 2026 outlook, expecting total revenues to be at least flat to 1.5% growth. The Zacks Consensus Estimate for 2025 revenues is pegged at $4.07 billion, implying 1.6% growth.

Adjusted EPS for 2026 is expected in the range of $10.70-$11.20. The Zacks Consensus Estimate for the metric is pegged at $10.59.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -20.22% due to these changes.

VGM Scores

At this time, Charles River has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Charles River has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Charles River Laboratories International, Inc. (CRL): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research