Charles River says well-positioned to address strong demand
Says investments have positioned CRL well to address continued strong demand, which is basis for 2018 outlook.Says Non-GAAP EPS guidance includes a 14c gain on venture capital investments and 14c for excess tax benefits associated with stock compensation. Says adjusting both 2017 and 2018 non-GAAP EPS for both VC gains and the excess tax benefit, non-GAAP EPS y-o-y growth would be 8%-11. Says including MPI, non-GAAP EPS range is $5.67-$5.82, a 13.5%-16.5% growth rate on the same adjusted basis. Says in both cases, the projected EPS growth rates are in line with goal of greater than 200 basis points higher than the organic revenue growth rate. Says plans to continue to expand in China. Expects trends to continue: Declining demand for large biopharma, Increasing demand from biotechs, Strong growth in China, Modest price increases, Demand for services. Reaffirms our long-term target of low-single-digit revenue growth for RMS. Expects Discovery to generate higher revenue growth in 2018 and beyond. Says continues to expand services and demand for outsourced services trends higher. Sees improved revenue growth for Early Discovery in 2018. Sees continued Safety Assessment growth in 2018.