J.P. Morgan Reports "Generally Soft" 1Q Results For Charles River Laboratories

According to J.P. Morgan, Charles River Laboratories CRL 1Q results were generally soft (net sales -2.2% y/y), but showed q/q improvement (+1.5% q/q) against diminished expectations (consensus $279M), with cost initiatives and share repurchases providing cushion on the bottom line. J.P. Morgan said that, “Despite cautious optimism around the preclinical services market, we continue to believe that there is still risk around further pharma R&D cuts and margins, given overcapacity among both CROs and pharma, and accordingly, we remain Neutral on CRL shares.” Charles River Laboratories closed yesterday at $41.52.