In This Article:
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Organic Revenue Growth: 6% for the third quarter of fiscal year 2025.
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Adjusted Operating Margin: 34.9% for the quarter.
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Adjusted EPS: $0.56 compared to $0.48 in the prior year.
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GAAP EPS: $0.14 compared to $0.31 in the prior year.
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Q3 Revenue: $316.2 million, a 6% increase year over year on an organic basis.
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Adjusted Gross Margin: 71.6% in the quarter.
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Adjusted SG&A: 29% of revenue, down from 30.3% in the prior year.
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R&D Expense: 7.8% of revenue, down from 8.5% in the prior year.
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Cash Generated from Operations: $41.1 million in the quarter.
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Capital Expenditures: $10.1 million net investment.
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Dividends and Stock Buybacks: $12.6 million in dividends and $100 million in stock buybacks.
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Protein Sciences Segment Revenue: $227.7 million, with 7% organic growth.
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Diagnostics and Spatial Biology Segment Revenue: $89.2 million, with 2% organic growth.
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Net Interest Expense: $0.8 million, a decrease of $2.3 million compared to the prior year.
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Bank Debt: $330 million at the end of Q3.
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Cash Balance: $140.7 million at the end of Q3.
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Total Leverage Ratio: Well below 1 times EBITDA.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bio-Techne Corp (NASDAQ:TECH) reported a strong quarter with 6% organic revenue growth despite a challenging macro environment.
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The company achieved an adjusted operating margin of 34.9%, highlighting operational efficiencies and profitability.
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Bio-Techne's protein sciences segment saw 7% organic revenue growth, driven by strong demand for proteomic reagents and cell therapy workflow solutions.
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The diagnostics and spatial biology segment delivered 2% organic revenue growth, with notable progress in the ExoDx prostate cancer test and spatial biology instruments.
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Bio-Techne is well-positioned to benefit from potential shifts in NIH funding towards research areas like cancer and neurological disorders, aligning with their product portfolio.
Negative Points
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Uncertainty around NIH funding and US policy shifts is causing concern among US academic customers, potentially impacting future research project funding.
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The recent escalation of global tariffs poses a challenge, with a potential $20 million annual impact on adjusted operating income if not mitigated.
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China's economic situation remains challenging, with mid-single-digit revenue declines in the region.
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The academic market in the US is facing headwinds due to NIH funding uncertainties, impacting purchase decisions, particularly for capital equipment.
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Bio-Techne anticipates a temporary slowdown in growth momentum to low single digits in Q4 due to macro uncertainties, including tariffs and potential NIH budget cuts.