Yahoo Finance Bio-Techne Corp (TECH) Q3 Fiscal 2024 Earnings: Mixed Results Amid Market Challenges
Revenue: $303.4M, up 3% year-over-year, surpassing estimates of $292.19M.
Net Income: $49.06M, down 30% from the previous year, falling short of estimates of $72.70M.
Earnings Per Share (EPS): Reported GAAP EPS of $0.31, below the estimated $0.45; Adjusted EPS of $0.48, also below the estimated $0.45.
Operational Cash Flow: Increased to $223.5M, up 31% from the prior year, indicating strong cash generation capabilities.
Segment Performance: Diagnostics & Genomics segment grew 16% to $87.5M, driven by 10% organic growth and acquisitions.
Operating Margin: Adjusted operating margin recorded at 33.0%, a decrease from 37.0% in the previous year, impacted by acquisition costs and volume leverage.
On May 1, 2024, Bio-Techne Corp (NASDAQ:TECH) disclosed its financial outcomes for the third quarter of fiscal year 2024, revealing a complex landscape of growth and setbacks. The company announced these details in its 8-K filing. Based in Minnesota, Bio-Techne operates primarily in the life sciences sector, providing essential products and services across two major segments: Protein Sciences and Diagnostics and Genomics.
Quarterly Financial Highlights
Bio-Techne's third-quarter results showed a reported revenue increase to $303.4 million, up by 3% year-over-year, and slightly above the analyst's expectation of $292.19 million. However, the GAAP earnings per share (EPS) of $0.31 fell short of the estimated $0.45, reflecting a decrease from the previous year's $0.43. The adjusted EPS was $0.48, compared to $0.53 a year ago, also missing the estimated earnings but aligning more closely with market anticipations.
Operational and Segment Performance
The company experienced robust commercial execution in its Diagnostics & Genomics segment, which grew by 10% organically and 16% in reported terms. This growth was driven by the continued uptake of cell and gene therapy workflow solutions and record sales in the GMP reagent portfolio. Conversely, the Protein Sciences segment faced a slight decline, with sales dropping by 2% to $214.6 million from the previous year, primarily due to restructuring and the impact of unfavorable volume leverage.
Strategic Developments and Market Position
Despite the mixed financial results, Bio-Techne's strategic initiatives appear to be paying off, particularly in the Diagnostics and Genomics areas. The acquisition of Lunaphore and investments in expanding the company's diagnostics capabilities have positioned Bio-Techne favorably in high-growth markets. However, these expansions have also led to increased operating costs, which have impacted overall profitability.
Financial Statements and Non-GAAP Measures
Bio-Techne's balance sheet remains solid with cash and equivalents of $139.9 million as of March 31, 2024. The company's approach to providing non-GAAP measures, such as adjusted EBITDA and adjusted operating income, offers stakeholders a clearer view of operational performance by excluding one-time costs and non-recurring events. These measures are crucial for assessing the underlying business dynamics, especially in a period of strategic transitions and market fluctuations.
Executive Insights
Kim Kelderman, President and CEO of Bio-Techne, commented on the results, emphasizing the solid top-line performance and strategic positioning for long-term growth.
I am proud of the remarkable execution of our Bio-Techne team under challenging end market conditions, which drove solid top-line performance," said Kelderman.
He highlighted the sequential improvement in adjusted operating margin, which stood at 33.0%, up by 290 basis points.
Looking Forward
As Bio-Techne navigates through the evolving biotechnology landscape, its focus on enhancing product offerings and optimizing operational efficiency is expected to sustain growth momentum. However, investors and stakeholders will be watching closely how the company manages its expense structure and integration of recent acquisitions to ensure long-term profitability and shareholder value.
For more detailed information on Bio-Techne's financial performance, including full financial statements and reconciliation of GAAP to non-GAAP measures, please refer to their official earnings release and supplementary materials.
Explore the complete 8-K earnings release (here) from Bio-Techne Corp for further details.
This article first appeared on GuruFocus.
