Charles River Posts Q3 Results In Line With Expectations; Maintaining $260 FVE, Shares Undervalued

Charles River reported third-quarter results in line with our expectations. Quarterly revenue reached $989 million, representing 10% growth year over year. The company continues to benefit from strong booking demand and a robust backlog. While foreign exchange headwinds and interest rate increases are continuing to impact the company in the near term, we maintain our positive long-term outlook. The impact of foreign currency translation reduced Charles Rivers’ reported revenue by 4.5%. Excluding the effect of these items, organic revenue growth of 15% was driven by contributions from all three business segments.