CR

Charles River Laboratories International, Inc. stock research

Sep 30, 2023

FY2023 Q3

Charles River Laboratories International (CRL) Gross Margin — Quarter Ended Sep 30, 2023

In the current quarter, revenue decreased compared to the previous quarter, while cost of revenue remained relatively stable, leading to a lower gross profit and a weakened gross margin. Revenue increased year-over-year, but gross margin comparison is not available for the prior year quarter.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the current quarter, revenue decreased compared to the previous quarter, while cost of revenue remained relatively stable, leading to a lower gross profit and a weakened gross margin. Revenue increased year-over-year, but gross margin comparison is not available for the prior year quarter.

  • The margin weakened primarily because revenue decreased while cost of revenue remained relatively stable.
  • The gross margin weakened compared to the previous quarter; year-over-year comparison is not possible due to missing data.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

35.2%

Gross profit

$361.8M

Revenue

$1.0B

Cost of revenue

$664.8M

Quarter-over-quarter change

-2.4 pts

Year-over-year change

n/a

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$1.0B$377.7M$651.7M36.7%
Jul 1, 2023$1.1B$399.0M$661.0M37.6%
Sep 30, 2023$1.0B$361.8M$664.8M35.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 1, 2023

-2.4 pts

Year-over-year change

Sep 24, 2022

n/a

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The margin weakened primarily because revenue decreased while cost of revenue remained relatively stable.

The gross margin weakened compared to the previous quarter; year-over-year comparison is not possible due to missing data.

Monitor whether revenue continues to decline relative to cost of revenue, which could further pressure margins.

CRL Gross Margin — Quarter Ended Sep 30, 2023