Let’s dig into the relative performance of Bio-Techne (NASDAQ:TECH) and its peers as we unravel the now-completed Q4 research tools & consumables earnings season.
The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.
The 10 research tools & consumables stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.5% since the latest earnings results.
Best Q4: Bio-Techne (NASDAQ:TECH)
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Bio-Techne reported revenues of $297 million, up 9% year on year. This print exceeded analysts’ expectations by 4.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
"The Bio-Techne team once again executed at a high level and delivered strong second quarter results," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne.
Bio-Techne achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 18.1% since reporting and currently trades at $59.51.
Is now the time to buy Bio-Techne? Access our full analysis of the earnings results here, it’s free.
Mettler-Toledo (NYSE:MTD)
With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE:MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.
Mettler-Toledo reported revenues of $1.05 billion, up 11.8% year on year, outperforming analysts’ expectations by 3.6%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 12.1% since reporting. It currently trades at $1,190.
Is now the time to buy Mettler-Toledo? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Avantor (NYSE:AVTR)
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Avantor reported revenues of $1.69 billion, down 2.1% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue estimates.
Avantor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 25.8% since the results and currently trades at $16.08.
Read our full analysis of Avantor’s results here.
Danaher (NYSE:DHR)
Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE:DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.
Danaher reported revenues of $6.54 billion, up 2.1% year on year. This result beat analysts’ expectations by 1.6%. It was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates.
The stock is down 15.3% since reporting and currently trades at $210.
Read our full, actionable report on Danaher here, it’s free.
Sotera Health Company (NASDAQ:SHC)
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Sotera Health Company reported revenues of $290.2 million, down 6.5% year on year. This print met analysts’ expectations. Aside from that, it was a slower quarter as it produced a significant miss of analysts’ full-year EPS guidance estimates and organic revenue in line with analysts’ estimates.
Sotera Health Company had the slowest revenue growth among its peers. The stock is down 12.7% since reporting and currently trades at $11.91.
Read our full, actionable report on Sotera Health Company here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.