Q1 2024 Earnings Summary
Reported on Oct 31, 2023 (Before Market Open)
Pre-Earnings Price$56.64Last close (Oct 30, 2023)
Post-Earnings Price$57.54Open (Oct 31, 2023)
Price Change
$0.90(+1.59%)
- Recovery in OEM business with bulk orders on the rise, indicating that destocking is largely behind and large orders are returning, which could drive double-digit growth.
- Strong growth in key platforms: Exosome diagnostics saw 50% growth, spatial biology had double-digit growth, and GMP proteins grew by 40%. The company plans to more than double protein production and is building a new factory in China due to accelerating demand, highlighting future growth potential.
- Simple Western platform expected to grow at a 15% CAGR over the next decade, driven by low market penetration (under 20%) and unique technology with strong IP, positioning it as a significant long-term growth driver.
- The company is experiencing softness in the biopharma segment, particularly in the U.S. and China, due to funding challenges and cautious spending among small to medium biotech companies, which is expected to persist for the next couple of quarters.
- There is no sign of recovery in China in this fiscal year, and the U.S. market has started to soften, leading the company to provide flattish guidance for Q2 with uncertainty beyond that. ,
- The CEO acknowledges that the life sciences industry is in a recession with a hard landing, which may continue to negatively impact the company's performance.
Research analysts covering BIO-TECHNE.