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Bio-Techne Gears Up for Q1 Earnings Release: What's in the Cards?

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Bio-Techne Corporation (TECH - Free Report) is set to release its first-quarter fiscal 2025 results on Oct. 30, before the opening bell.

The medical diagnostic testing provider posted adjusted earnings per share (EPS) of 49 cents in the last reported quarter, which missed the Zacks Consensus Estimate by 3.92%. The company topped earnings estimates in one of the trailing four quarters and missed in the other three, the average negative surprise being 2.79%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

TECH's Q3 Estimates

For the fiscal first quarter, the Zacks Consensus Estimate for Bio-Techne’s revenues is pegged at $280.9 million, indicating an increase of 1.4% from the year-ago reported figure.

The Zacks Consensus Estimate for the company’s first-quarter fiscal 2025 EPS suggests a 7.3% decline to 38 cents.

Estimate Revision Trend Ahead of TECH’s Earnings

Estimates for Bio-Techne’s first-quarter earnings have moved down 15.5% to 38 cents in the past 90 days.

Bio-Techne Corp Price and EPS Surprise

Bio-Techne Corp Price and EPS Surprise

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

Let’s take a quick look at the company’s performance leading up to this announcement.

Factors Influencing Bio-Techne's Fiscal Q1 Performance

Bio-Techne’s cell and gene therapy vertical has shown continued traction in recent quarters, banking on strong performances of the company’s proteomic reagent and scalable workflow solutions that enable customers to accelerate e-clinical, clinical and eventually the commercialization of these next-generation therapeutics. New customer additions over the past two years have led to a significant expansion of this business. In the fiscal first quarter, the company is expected to have witnessed strong growth within this business, with its automated multiplexing immunoassay instrument Ella quickly becoming the go-to platform for cell and gene therapy customers for viral titer and release testing.

Further, the company’s newly added Simple Western platform called Leo (a high-throughput automated western blot system, enabling the simultaneous analysis of up to 100 samples in a single three-hour run) gained traction in the fourth quarter of fiscal 2024,  being increasingly used for absolute protein quantitation and relative potency assay. This might have once again contributed to the top line in the fiscal first quarter.

However, a tough biotech funding scenario might affect the results.

Within the Spatial Biology growth vertical, despite the budget reset by the pharma customers, Bio-Techne is expected to have reported strong growth, banking on the strong adoption of the company’s new spatial biology instrument COMET.

Earlier in the calendar year 2024, Bio-Techne enabled RNA detection and visualization on COMET with the launch of RNAscope HiPlex capabilities for the instrument. Following this launch, COMET is now capable of detecting and visualizing up to 24 plate proteins and 12 RNA targets simultaneously, creating a highly differentiated multiomic system for the rapidly growing spatial biology market. These enhanced capabilities are expected to have expanded the business in the fiscal first quarter.

However, a significant R&D budget recalibration by large pharma and academia customers might have acted as a dampener for the expansion of this vertical.

During the fourth quarter of fiscal 2024, Bio-Techne noted that the Molecular Diagnostics growth vertical is already in growth acceleration mode as its unique and underpenetrated portfolio of products continues to take market share. In the fiscal first quarter, too, this trend is likely to have continued, banking on the ongoing traction and market adoption of the ExoDx Prostate test, together with new product launches within the surging franchise.

What Our Model Unveils for TECH

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is exactly the case here, as you can see.

Earnings ESP: Bio-Techne has an Earnings ESP of +1.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Other MedTech Stocks to Consider

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

Atea Pharmaceuticals (AVIR - Free Report) has an Earnings ESP of +13.13% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to release third-quarter 2024 results soon. AVIR’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 5.23%.

RadNet (RDNT - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results shortly.

RDNT’s earnings surpassed estimates in three of the trailing four quarters and met in one, the average surprise being 98.23%. The Zacks Consensus Estimate for RadNet’s third-quarter EPS indicates an increase of 21.4% from the year-ago quarter’s reported figure.

TransMedics Group (TMDX - Free Report) has an Earnings ESP of +26.63% and a Zacks Rank #3 at present. The company is scheduled to release third-quarter 2024 results on Oct. 28.

The Zacks Consensus Estimate for EPS implies a surge of 333.3% from the year-ago quarter’s reported figure.

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