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On 30 March 2019, Charles River Laboratories International, Inc. (NYSE:CRL) released its earnings update. Generally, analyst consensus outlook appear cautiously optimistic, with earnings expected to grow by 14% in the upcoming year against the past 5-year average growth rate of 8.7%. Currently with trailing-twelve-month earnings of US$225m, we can expect this to reach US$257m by 2020. Below is a brief commentary on the longer term outlook the market has for Charles River Laboratories International. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
How will Charles River Laboratories International perform in the near future?
Over the next three years, it seems the consensus view of the 14 analysts covering CRL is skewed towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2022, CRL's earnings should reach US$349m, from current levels of US$225m, resulting in an annual growth rate of 14%. EPS reaches $7.16 in the final year of forecast compared to the current $4.69 EPS today. Margins are currently sitting at 9.9%, which is expected to expand to 12% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For Charles River Laboratories International, there are three fundamental aspects you should further research:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Charles River Laboratories International worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Charles River Laboratories International is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Charles River Laboratories International? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.