Bio-Techne TECH reported second-quarter fiscal 2025 adjusted earnings per share (EPS) of 42 cents, which exceeded the Zacks Consensus Estimate by 10.5%. The bottom line improved from the year-ago figure of 40 cents.

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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 22 cents compared with 17 cents in the prior-year quarter.

Following the earnings announcement, shares of TECH rose 4.8% in pre-market trading today.

TECH's Q2 Revenues in Detail

Bio-Techne registered net sales of $297.0 million, up 9% year over year on a reported basis and 9% on an organic basis. The figure also topped the Zacks Consensus Estimate by 4.1%.

Quarter in Details

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

Within Protein Sciences, Bio-Techne recorded revenues of $211.6 million, up 7% year over year (up 8% 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 12% to $84.1 million (up 12% organically as well) in the fiscal second quarter.

Margin Trend

Bio-Techne’s gross profit edged up 9.8% to $193.9 million. Gross margin expanded 50 basis points (bps) to 65.3% despite a 7.4% rise in cost of sales.

Selling, general and administrative expenses escalated 5% to $121.4 million. Research and development expenses totaled $25 million, up 9.2% year over year. Total operating expenses were $146.5 million, up 5.7% from the prior-year quarter’s level.

Operating margin expanded a huge 202 bps to 16% in the reported quarter.

Capital Structure

Bio-Techne exited the fiscal second quarter with cash and equivalents and short-term available-for-sale investments of $177.5 million compared with $152.9 million at the end of the first quarter of fiscal 2025. Long-term debt obligations totaled $300 million at the end of the reported quarter compared with $319 million at the end of the fiscal first quarter.

Cumulative net cash provided by operating activities was $148.2 million at the end of the second quarter compared with $142.5 million a year ago.

Bio-Techne Corp Price, Consensus and EPS Surprise

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

Our Take on Bio-Techne

Bio-Techne’s second-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. Additionally, expanding margins look 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 improvement in the biopharma end-market. This was augmented by the strong results of its cell and gene therapy business, including robust growth in the GMP reagent portfolio.

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 Quest Diagnostics DGX, ResMed RMD and Cardinal Health CAH. 

Quest Diagnostics reported fourth-quarter 2024 adjusted EPS of $2.23, which topped the Zacks Consensus Estimate by 1.8%. Revenues of $2.62 billion beat the Zacks Consensus Estimate by 1.9%. DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DGX has an earnings yield of 5.9% compared with the industry’s 4.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 3.8%.

ResMed, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2025 adjusted EPS of $1.93, which outpaced the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

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