Charles River Laboratories beat expectations despite sales at its preclinical services unit falling for the 13th consecutive quarter.
Net sales from the preclinical services business fell four per cent year-on-year to continue the long-running downwards trend. The decline was offset by the research models unit, which grew revenues by more than eight per cent and accounted for close to two-thirds of sales in the fourth quarter.
“Operating results for the fourth quarter were surprisingly strong. Research models revenue and higher than expected gross margins drove upside in both revenue and earnings per share”, David Windley, equity analyst at Jefferies & Company, wrote in a note to investors.