Charles River Laboratories (CRL) stock soared 5.08% during intraday trading on Wednesday, following the company's release of better-than-expected fourth quarter 2024 financial results and guidance for 2025.

The medical research firm reported Q4 non-GAAP earnings per share of $2.66, surpassing analyst consensus estimates of around $2.50-2.53. Revenue for the quarter came in at $1 billion, beating expectations in the range of $975-984 million.

The robust revenue performance was attributed to stable demand for CRL's drug discovery and development services from biotech clients. Charles River's CEO James Foster noted that small and mid-sized biotech companies benefited from an improved funding environment in 2024 compared to the prior two years, helping support demand.

While CRL projects a 4.5-7% decline in revenue for 2025 amid continued budgetary pressures from large biopharma clients, the company expects cost savings from restructuring efforts to partially offset this impact. Importantly, full-year 2025 non-GAAP earnings per share guidance of $9.10-9.60 was issued, with the midpoint above current analyst estimates.

Investors appeared to view CRL's Q4 beat, solid 2025 EPS outlook, and restructuring actions as positive signs, driving the stock's notable gain on Wednesday. The company's drug development services remain in demand from the biotech sector despite an uncertain funding climate.