Charles River Laboratories International, Inc. (NYSE:CRL) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.3% to hit US$983m. Charles River Laboratories International also reported a statutory profit of US$6.86, which was an impressive 244% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, Charles River Laboratories International's 15 analysts currently expect revenues in 2027 to be US$4.02b, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 1,016% to US$9.36. Before this earnings report, the analysts had been forecasting revenues of US$4.02b and earnings per share (EPS) of US$9.36 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Charles River Laboratories International
The analysts reconfirmed their price target of US$319, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Charles River Laboratories International at US$390 per share, while the most bearish prices it at US$145. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Charles River Laboratories International's past performance and to peers in the same industry. We would highlight that Charles River Laboratories International's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2027 being well below the historical 2.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Charles River Laboratories International is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Charles River Laboratories International's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$319, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Charles River Laboratories International analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Charles River Laboratories International you should be aware of.
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