Charles River misses Street, cuts guidance

Research tool supplier CRL fell $7.26 (15%) to $39.64 on Wednesday after reporting lower-than-expected first quarter financials and cutting its 2006 guidance. Non-GAAP EPS was $0.50, missing by $0.07 the Street estimate of $0.57 and down 9% from $0.55 in the prior year's quarter. Net sales for the quarter increased 4% to $283.8 million from $273.7 million.

The company lowered its 2006 sales growth guidance to 6-8% from 7-9%, due primarily to continuing softness in transgenic services, flat sales in vaccine services and capacity constraints in preclinical services. CRL lowered its 2006 non-GAAP EPS guidance to $2.12-$2.18 from $2.34-$2.40. The Street was expecting EPS of $2.38. ...