Charles River Laboratories ($CRL) is dialing up its expectations for the year after some M&A padded its second-quarter results, riding a 16.5% boost in sales.
The CRO's revenue came in at $341.2 million, with its recent $179 million acquisition of Galapagos' Argenta and BioFocus businesses contributing 8% on the quarter. Net income totaled $36.5 million, a nearly 28% increase over the same period last year.
On a segment basis, Charles River's Research Models and Services business grew 2.6% to $133.1 million in the second quarter, while its Discovery and Safety Assessment unit leapt 32.7% to $142.6 million, and its smaller manufacturing operation jumped 17.5% to $65.4 million.
For the full year, Charles River is still forecasting revenue of up to $1.3 billion--good for 11% growth--and the CRO is increasing its earnings guidance, now expecting between $2.64 and $2.74 per share, a 4 cent raise on the high and low ends.
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| Charles River CEO James Foster |
The second quarter performance is among the strongest in Charles River's history, CEO James Foster said, and the CRO plans to keep up the momentum with more and deeper-seated deals.
"We are continuing our focus on targeted sales efforts, which have been particularly successful with the mid-tier clients," Foster said in a statement. "And now that we have broadened our early-stage portfolio with the addition of early discovery capabilities, we are engaging in expanded discussions with existing clients and reaching potential clients who are interested in outsourcing entire drug discovery and development programs to a single provider."
- read the results