Charles River Labs reported that second-quarter revenues soared 24.8% to $585.3 million from $469.1 million a year ago on support from recent acquisitions and a favorable foreign currency environment.
The company also increased its revenue guidance on 2018 revenue and earnings per share.
The strong quarter for the Massachusetts-based CRO was driven by all three of its business segments, with the company specifically noting its discovery and safety assessment division.
Business from acquisitions of MPI Research, Brains On-Line and KWS BioTest represented 15.1% of second-quarter revenues with foreign currency representing 2.6% of the gains. Those factors aside, organic revenue growth was responsible for 7.1% of its quarterly revenue gains.
A year ago, Charles River snapped up small-cap CRO Brains On-Line for $21 million then followed up in January this year with the $20 million acquisition of immuno-oncology and inflammatory and infectious diseases CRO KWS BioTest. The following month, Charles River purchased nonclinical CRO MPI Research for about $800 million in cash.
Acquisition and integration costs, including amortization of intangible assets related to the MPI Research deal accounted for—on a GAAP basis—a 3.3% decline of net income from $52.2 million versus $54 million for the same period last year. The second quarter diluted earnings per share on a GAAP basis were down 5.4% to $1.06 compared to $1.12 a year ago.
“We believe our robust second-quarter revenue growth is indicative of an extremely healthy market environment,” James Foster, the company’s chair and president and CEO, said in a statement. “As a result, we are increasing our revenue and earnings per share guidance for the year.”
The company raised its revenue forecast for the year to a range of 19% to 21%. Previously it forecast gains in a range of 18% to 20%. Its GAAP earnings-per-share forecast was increased to a range of $4.30-$4.45 from $4.22-$4.37.