Bio-Techne TECH reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, which surpassed the Zacks Consensus Estimate by 9.8%. The bottom line improved from the year-ago figure of 48 cents.
The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles and Wilson Wolf intangible assets, acquired inventory, and restructuring and restructuring-related costs, among others.
GAAP EPS was 14 cents compared with 31 cents in the prior-year quarter.
Following the earnings announcement, shares of TECH rose 5.8% in pre-market trading today.
TECH's Q3 Revenues in Detail
Bio-Techne registered net sales of $316.2 million, up 4.2% year over year on a reported basis and 6% on an organic basis. The figure also topped the Zacks Consensus Estimate by 0.3%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Quarter in Detail
The company reports under two business segments — Protein Sciences, and Diagnostics and Genomics.
Within Protein Sciences, Bio-Techne recorded revenues of $227.7 million, up 6% year over year (up 7% organically). As of Dec. 31, 2023, a business within the Protein Sciences Segment met the criteria as held-for-sale. This business has been excluded from the segment's fiscal 2025 operating results.
Within Diagnostics and Genomics, sales improved 2% to $89.2 million (up 2% organically as well) in the fiscal third quarter.
Margin Trend
Bio-Techne’s gross profit edged up 4.9% to $214.6 million. Gross margin expanded 43 basis points (bps) to 67.9% despite a 2.8% rise in cost of sales.
Selling, general and administrative expenses escalated 35.2% to $151.3 million. Research and development expenses totaled $24.6 million, down 4.6% year over year. Total operating expenses were $175.8 million, up 27.8% from the prior-year quarter’s level.
Operating margin contracted a huge 984 bps to 12.2% in the reported quarter.
Capital Structure
Bio-Techne exited the fiscal third quarter with cash and equivalents and short-term available-for-sale investments of $140.7 million compared with $177.5 million at the end of the second quarter of fiscal 2025. Long-term debt obligations totaled $330 million at the end of the reported quarter compared with $319 million at the end of the fiscal second quarter.
Cumulative net cash provided by operating activities was $189.3 million at the end of the fiscal third quarter compared with $223.5 million a year ago.
Bio-Techne exited third-quarter fiscal 2025 with better-than-expected results, wherein both earnings and revenues exceeded the respective Zacks Consensus Estimate. The company registered a year-over-year improvement in organic sales for both segments. Additionally, expanding gross margin looks encouraging.
According to Bio-Techne’s management, the start of fiscal 2025 was largely consistent with the company’s expectations. During the quarter, the company experienced an improvement in the biopharma end-market. This was augmented by the strong results of its cell therapy and protein analysis instrumentation businesses.
Meanwhile, a huge contraction in operating margin does not bode well.
TECH's Zacks Rank and Key Picks
Bio-Techne currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Integer Holdings Corporation ITGR and Boston Scientific BSX.
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 70.9%.
Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, exceeding the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.
ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 2.8%.
Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.
BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.8%.
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