The drop in growth comes as research model revenue in Europe and Japan “continued to be soft,” and research models on the whole continued to decline following the loss of a NCI (National Cancer Institute) contract, James Foster, Chairman, President and CEO, said Thursday. The company’s stock fell on Thursday by nearly 10%.
First-quarter diluted earnings per share on a non-GAAP basis also decreased 3.7% compared to Q1 2014, which the company said can be attributed to a significantly smaller gain from its limited partnership investments.
Early discovery acquisitions in 2014, which include Argenta, BioFocus, and ChanTest, contributed 8% to consolidated first-quarter revenue growth, both on a reported basis and in constant currency.
James Foster, noted in the conference call, “Improving trends in March and April give us confidence in a stronger second-quarter performance and for the remainder of the year.”
Moving forward for the full year, CRL is increasing its guidance for constant-currency revenue growth to a range of 6.5% to 8.0% in 2015, though due to a more negative effect from foreign currency translation, the company is maintaining its guidance for non-GAAP earnings per share in a range from $3.55 to $3.65.