Charles River Q2 Results Top Estimates; Lifts FY16 Adj. EPS, Revenue Growth View

(RTTNews) - Charles River Laboratories International, Inc. (CRL) reported Wednesday that its second-quarter net income attributable to common shareholders was $35.21 million or $0.73 per share, compared to $48.51 million, or $1.02 per share last year.

The decline was due primarily to costs associated with the evaluation and integration of acquisitions, as well as the absence of prior year's bargain purchase gain resulting from the acquisition of Sunrise Farms.

Adjusted net income from continuing operations was $57.4 million, compared to $45.8 million in 2015. Adjusted earnings per share were $1.20, compared to $0.96 per share last year.

On average, 19 analysts polled by Thomson Reuters expected earnings of $1.10 per share. Analysts' estimates typically exclude special items.

The increase was driven primarily by higher revenue as a result of the performance of the legacy operations and the acquisition of new businesses, notably WIL Research.

For the quarter, revenue from continuing operations was $434.1 million, an increase of 27.8% from $339.6 million in the second quarter of 2016. Analysts were looking for revenues of $425.08 million.

Looking ahead, for fiscal 2016, the company now expects earnings of $3.15 to $3.25 per share, lower than previous estimate of $3.39 to $3.57 per share, to reflect higher acquisition-related costs and the planned closure of a facility in Ireland as part of the Company's ongoing efficiency initiatives.

Adjusted earnings per share would be $4.40 to $4.50, compared to previous estimate of $4.32 to $4.45 per share. Analysts expect earnings of $4.39 per share.

As a result of robust revenue growth in the first half of 2016, the revenue guidance range has been raised by 1%. Revenue growth is now expected to be 20% to 23.5%, compared to previous estimate of 19% to 22.5%.