Charles River Laboratories International In Stock Upgraded (CRL)

NEW YORK ( TheStreet) -- Charles River Laboratories International In (NYSE: CRL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • CHARLES RIVER LABS INTL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHARLES RIVER LABS INTL INC turned its bottom line around by earning $2.23 versus -$5.81 in the prior year. This year, the market expects an improvement in earnings ($2.43 versus $2.23).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Life Sciences Tools & Services industry. The net income increased by 107.9% when compared to the same quarter one year prior, rising from -$343.56 million to $27.12 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.0%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, CHARLES RIVER LABS INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • 39.90% is the gross profit margin for CHARLES RIVER LABS INTL INC which we consider to be strong. Regardless of CRL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.30% trails the industry average.
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Charles River Laboratories International, Inc., together with its subsidiaries, provides research models and associated services, and outsourced preclinical services to accelerate the drug discovery and development process. Charles River Laboratories International In has a market cap of $1.65 billion and is part of the health care sector and drugs industry. Shares are up 24% year to date as of the close of trading on Tuesday.

You can view the full Charles River Laboratories International In Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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