Bio-Techne Q3 Earnings & Revenues Top Estimates, Stock Up in Premarket

Core Insights - Bio-Techne (TECH) reported third-quarter fiscal 2025 adjusted earnings per share (EPS) of 56 cents, exceeding the Zacks Consensus Estimate by 9.8% and improving from 48 cents year-over-year [1] - The company's net sales reached $316.2 million, reflecting a 4.2% year-over-year increase on a reported basis and a 6% increase on an organic basis, surpassing the Zacks Consensus Estimate by 0.3% [3] - Despite the positive revenue growth, the operating margin contracted significantly by 984 basis points to 12.2% due to rising operating expenses [5][10] Financial Performance - Adjusted EPS for the quarter was 56 cents, while GAAP EPS was reported at 14 cents, down from 31 cents in the prior-year quarter [2] - Gross profit increased by 4.9% to $214.6 million, with a gross margin expansion of 43 basis points to 67.9% despite a 2.8% rise in cost of sales [5] - Selling, general and administrative expenses surged by 35.2% to $151.3 million, while research and development expenses decreased by 4.6% to $24.6 million [5] Segment Performance - In the Protein Sciences segment, revenues were $227.7 million, up 6% year-over-year (7% organically) [4] - The Diagnostics and Genomics segment saw sales improve by 2% to $89.2 million, with organic growth also at 2% [4] - Both segments demonstrated year-over-year improvement in organic sales, indicating a positive trend in the company's core business areas [9] Capital Structure - At the end of the fiscal third quarter, Bio-Techne had cash and equivalents of $140.7 million, down from $177.5 million at the end of the previous quarter [6] - Long-term debt obligations increased to $330 million from $319 million in the prior quarter [6] - Cumulative net cash provided by operating activities was $189.3 million, a decrease from $223.5 million a year ago [7] Market Reaction - Following the earnings announcement, shares of Bio-Techne rose by 5.8% in pre-market trading [2] - The management indicated that the start of fiscal 2025 was largely consistent with expectations, driven by improvements in the biopharma end-market and strong results in cell therapy and protein analysis instrumentation [10]