Overview

• US life science tools maker's fiscal Q4 revenue rose 2.6% yr/yr

• Adjusted operating income excluding unusual items up 49.2% yr/yr, driven by SDC backlog clearance

• Company posted net loss for the quarter, citing BPD revenue decline and export delays

Outlook

• Mesa expects to provide rest-of-year guidance with H1 results release

• Company expects overall revenues to return to positive core organic growth in 1Q27

Result Drivers

• SDC BACKLOG CLEARANCE - SDC division revenue growth was driven by reduction of backlog to more normalized levels, improved production, and modest price increases

• BPD REVENUE DECLINE - BPD division revenues fell sharply due to commercial execution challenges and shipping delays from export controls

• FAVORABLE PRODUCT MIX AND COST ACTIONS - Profitability was supported by favorable product mix and cost realignment actions, offsetting FX and tariff headwinds

Company press release: ID:nGNXS863Q

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 EPS		-$0.75
Q4 Net Income		-$4.14 mln
Q4 Basic EPS		-$0.75
Q4 Gross Profit		$42.21 mln
Q4 Operating Expenses		$39.46 mln
Q4 Operating Income		$2.75 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Mesa Laboratories Inc is $104.50, about 1.6% below its May 26 closing price of $106.17

• The stock recently traded at 75 times the next 12-month earnings vs. a P/E of 48 three months ago

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