Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Thermo Fisher (NYSE:TMO) and its peers.
The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.
The 10 research tools & consumables stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.1% since the latest earnings results.
Thermo Fisher (NYSE:TMO)
Known for its involvement in the Human Genome Project, Thermo Fisher (NYSE:TMO) supplies instruments, laboratory equipment, and reagents for scientific research and healthcare.Thermo Fisher reported revenues of $11.4 billion, up 4.7% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ organic revenue estimates but a significant miss of analysts’ operating income estimates.
“We finished 2024 with excellent financial performance, delivering strong growth on the top and bottom line in the fourth quarter,” said Marc N. Casper, chairman, president and chief executive officer of Thermo Fisher Scientific.
The stock is down 9% since reporting and currently trades at $517.
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Best Q4: Bio-Techne (NASDAQ:TECH)
Founded in 1976, Bio-Techne (NASDAQ:TECH) develops and manufactures reagents, instruments, and services for life science research, diagnostics, and biopharmaceutical production.Bio-Techne reported revenues of $297 million, up 9% year on year, outperforming analysts’ expectations by 4.2%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and a decent beat of analysts’ EPS estimates.
Bio-Techne scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 18.7% since reporting. It currently trades at $59.03.
Weakest Q4: Avantor (NYSE:AVTR)
Founded in 1904, Avantor (NYSE:AVTR) provides products and services to customers in the life sciences, advanced technologies, and applied materials industries.Avantor reported revenues of $1.69 billion, down 2.1% year on year, falling short of analysts’ expectations by 1.6%. It was a softer quarter as it posted a miss of analysts’ organic revenue estimates.
Avantor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 28.5% since the results and currently trades at $15.50.
Mettler-Toledo (NYSE:MTD)
Founded in 1945, Mettler-Toledo (NYSE:MTD) designs and manufactures precision instruments and services for use across healthcare research, quality control, production, and retail.Mettler-Toledo reported revenues of $1.05 billion, up 11.8% year on year. This number surpassed analysts’ expectations by 3.6%. It was a very strong quarter as it also recorded a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ full-year EPS guidance estimates.
The stock is down 8.3% since reporting and currently trades at $1,241.
Danaher (NYSE:DHR)
Started as a real estate investment trust, Danaher (NYSE:DHR) designs and manufactures professional, medical, industrial, and commercial products and services.Danaher reported revenues of $6.54 billion, up 2.1% year on year. This result topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates.
The stock is down 19.3% since reporting and currently trades at $200.
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This content was originally published on Stock Story
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