Q2 2024 Charles River Laboratories International Inc Earnings Call Transcript
Key Points
- Charles River Laboratories International Inc (CRL) reported revenue of $1.03 billion in the second quarter of 2024, which was in line with their outlook.
- Operating margin increased by 90 basis points year-over-year to 21.3%, driven by lower performance-based bonus compensation accruals.
- Earnings per share increased by 4.1% year-over-year to $2.80, exceeding prior guidance by approximately $0.40.
- The Manufacturing Solutions segment saw a 3.7% organic revenue increase, with each business within the segment contributing to the growth.
- The company is implementing aggressive cost-saving measures expected to generate over $150 million in annualized savings, which will be fully realized in 2025.
- Revenue declined by 3.2% on both a reported and organic basis compared to the previous year.
- The DSA segment experienced a 5% organic revenue decline, driven by lower revenue in both Discovery Services and Safety Assessment businesses.
- The RMS segment saw a 3.9% organic revenue decline, primarily due to lower NHP revenue.
- The company significantly reduced its financial guidance for the year, now expecting a 3% to 5% organic revenue decline.
- Demand from global biopharmaceutical clients is expected to continue to soften, impacting revenue growth into 2025.
Ladies and gentlemen, thank you for standing by, and welcome to Charles River Laboratories Second Quarter 2024 Earnings Conference Call. Just a reminder, this call is being recorded. (Operator Instructions)
I would now like to turn the conference over to our host, Mr. Todd Spencer, Vice President, Investor Relations. Mr. Spencer, please go ahead, sir.
Good morning, and welcome to Charles River Laboratories Second Quarter 2024 Earnings Conference Call and Webcast. This morning, I am joined by Jim Foster, Chair, President and Chief Executive Officer; and Flavia Pease, Executive Vice President and Chief Financial Officer. They will comment on our results for the second quarter of 2024. Following the presentation, they will respond to questions. There is a slide presentation associated with today's remarks, which will be posted on the Investor Relations section of our website at ir.criver.com.
A webcast replay of this call will be available beginning approximately 2
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