Overview

• U.S. life sciences tools firm's fiscal Q3 revenue declined 2%, missing analyst expectations

• Adjusted EPS for fiscal Q3 fell to $0.53, missing analyst expectations

• Company cites prior-year GMP fast-track orders and shipment timing as reasons for revenue decline

Outlook

• Company says early indicators point to a more constructive outlook as funding realigns

• Bio-Techne notes continued lag in spending by emerging biotech customers

• Company sees stabilizing demand in U.S. academic markets with low-single-digit growth

Result Drivers

• ORDER TIMING AND PRIOR-YEAR COMPARISONS - Co said revenue declined due to absence of prior-year GMP fast-track orders and timing of large Commercial Supply shipments

• LARGE PHARMA GROWTH OFFSET BY WEAK BIOTECH DEMAND - Co said large pharma delivered sixth straight qtr of double-digit growth, but this was offset by continued lag in spending by emerging biotech

• PRODUCT SEGMENT VARIATION - Co said Proteomic Analysis instruments, Spatial Biology, and GMP proteins (excluding fast-track customers) saw growth, while overall segment results were mixed

Company press release: ID:nPn1HSyVMa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Bio-Techne Corp is $75.00, about 32.3% above its May 5 closing price of $56.68

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 30 three months ago

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