Bio-Techne TECH reported first-quarter fiscal 2025 adjusted earnings per share (EPS) of 42 cents, which exceeded the Zacks Consensus Estimate by 10.5%. The company also exceeded the year-ago period figure by a penny.

The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles, amortization of Wilson Wolf intangible assets and acquired inventory and restructuring and restructuring-related costs among others.  

GAAP EPS was 21 cents compared with 31 cents in the prior-year quarter.

Following the earnings announcement, shares of TECH rose 4.5% in pre-market trading today.

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TECH's Q1 Revenues in Detail

Bio-Techne registered net sales of $289.5 million in the reported quarter, up 5% year over year on a reported basis and 4% on an organic basis. The figure also topped the Zacks Consensus Estimate by 3.1%.

Bio-Techne Corp Price, Consensus and EPS Surprise

Bio-Techne Corp price-consensus-eps-surprise-chart | Bio-Techne Corp Quote

Quarter in Details

The company reports under two business segments — Protein Sciences and Diagnostics and Genomics.

Within Protein Sciences, Bio-Techne recorded revenues of $204.5 million, flat year over year (up 1% 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. This exclusion reduced total sales by 1%.

Within Diagnostics and Genomics, sales improved 14% to $72.8 million (up 14% organically as well) in the fiscal first quarter.

Margin Trend

In the reported quarter, Bio-Techne’s gross profit edged down 1.2% to $183 million. Gross margin contracted 364 basis points (bps) to 63.2% on a 16% rise in cost of sales.

Selling, general and administrative expenses escalated 13.1% to $119.2 million. Research and development expenses totaled $23.8 million, down 0.5% year over year. Total operating expenses were $143 million, up 10.6% from the prior-year quarter.

Operating margin contracted a huge 635 bps to 13.8% in the reported quarter.

Protein Sciences segment's operating margin of 39.4% contracted 380 bps in the first quarter of fiscal 2025 primarily due to product mix and reinstatement of incentive compensation accruals. The Diagnostics and Spatial Biology segment's operating margin was 5.1% in the first quarter of fiscal 2025, reflecting a 440 bps expansion year over year. The segment's operating margin increased due to volume leverage and productivity initiatives, partially offset by the reinstatement of incentive compensation accruals.

Capital Structure

Bio-Techne exited the fiscal first quarter with cash and equivalents and short-term available-for-sale investments of $187.5 million compared with $152.9 million at the end of fiscal 2024. Long-term debt obligations were $300 million at the end of the reported quarter, compared with $319 million at the end of fiscal 2024.

Cumulative net cash provided by operating activities was $63.9 million at the end of the first quarter compared with $59.4 million a year ago.

Our Take on Bio-Techne

Bio-Techne’s first-quarter fiscal 2025 adjusted earnings and revenues exceeded the respective Zacks Consensus Estimate. The company registered a year-over-year improvement in organic sales for both segments.

According to Bio-Techne management, the start to fiscal 2025 was largely consistent with the company’s expectations. The company experienced continued momentum across its Diagnostics & Spatial Biology segment. This was augmented by the strong results of its cell and gene therapy business, including robust growth in the GMP reagent portfolio.

However, escalating costs and expenses put pressure on margins.

TECH's Zacks Rank and Key Picks

Bio-Techne currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Quest Diagnostics Incorporated DGX, ResMed Inc. RMD and Boston Scientific Corporation BSX.

Quest Diagnostics, carrying a Zacks Rank of 2 (Buy), reported third-quarter 2024 adjusted EPS of $2.30, beating the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion outpaced the consensus mark by 3.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quest Diagnostics has a long-term estimated growth rate of 6.5%. DGX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 3.4%.

ResMed reported first-quarter fiscal 2025 adjusted EPS of $2.20, beating the Zacks Consensus Estimate by 8.4%. Revenues of $1.22 billion surpassed the Zacks Consensus Estimate by 2.9%. It currently carries a Zacks Rank #2.

ResMed has a long-term estimated growth rate of 13.6%. RMD’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 6.4%.

Boston Scientific reported third-quarter 2024 adjusted EPS of 63 cents, beating the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion surpassed the Zacks Consensus Estimate by 4.4%. It currently carries a Zacks Rank #2.

Boston Scientific has a long-term estimated growth rate of 12.6%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.3%.

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