Charles River Laboratories International Inc. (CRL) saw its stock plummet 5.51% intraday on Wednesday. The sharp decline followed the release of the company's fourth-quarter and full-year 2025 financial results, which showed a year-over-year decrease in both adjusted earnings and revenue.
The company reported Q4 adjusted earnings of $2.39 per diluted share, down from $2.66 a year earlier. Revenue for the quarter was $994.2 million, a decline from $1.00 billion in the prior-year period. More concerning was the GAAP operating margin of -28.5%, driven by significant non-cash intangible asset and goodwill impairments totaling hundreds of millions of dollars.
Further pressuring the stock was management's outlook. The company expects a high-teens percentage decline in adjusted EPS for the first quarter of 2026 compared to the year-ago period. Additionally, its full-year 2026 adjusted EPS guidance range of $10.70 to $11.20 came in below the FactSet consensus estimate of $11, contributing to negative investor sentiment.
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