Why Charles River (CRL) Stock Is Plunging Today - Charles River (NYSE:CRL)

Charles River Laboratories International Inc CRL received a subpoena from the U.S. Department of Justice relating to an investigation into the Cambodian non-human primate (NHP) supply chain.
The company has been informed that this investigation relates specifically to several shipments of NHPs received by Charles River from its Cambodian supplier.
Due to ongoing investigations and the heightened focus on the Cambodian NHP supply chain in recent months, Charles River has voluntarily suspended NHP shipments from Cambodia.
The company reported Q4 revenues of $1.10 billion, an increase of 21.5%, beating the consensus of $1.04 billion.
The impact of foreign currency translation reduced reported revenue growth by 4.4%. Excluding the effect of these items, organic revenue growth was 18.8%, driven by contributions from all three business segments, primarily the Discovery and Safety Assessment (DSA) business segment.
The company reported an EPS of $2.98, beating the consensus of $2.75.
Guidance: Charles River expects FY23 adjusted EPS of $9.70 – $10.90 compared to the consensus of $11.37, with revenue growth of 1.5%-4.5%.
The 2023 revenue growth outlook and adjusted EPS reflects the impact of NHP supply constraints, which is expected to reduce the consolidated revenue growth forecast by approximately 200 to 400 basis points this year.
Price Action: CRL shares are down 14.40% at $208.50 on the last check Wednesday.

Why Charles River Stock Is Plunging Today