Looking back on research tools & consumables stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Mettler-Toledo (NYSE: MTD) 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 9 research tools & consumables stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 1.1% above.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Mettler-Toledo (NYSE: MTD)
With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE: MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.
Mettler-Toledo reported revenues of $883.7 million, down 4.6% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with a miss of analysts’ full-year EPS guidance estimates.
Patrick Kaltenbach, President and Chief Executive Officer, stated, “We had a good start to the year with solid growth in our Laboratory business, excluding the recovery of delayed shipments in the first quarter of 2024. Strong execution of our margin expansion strategies led to better-than-expected earnings.”
Interestingly, the stock is up 10.2% since reporting and currently trades at $1,163.
Read our full report on Mettler-Toledo here, it’s free.
Best Q1: Danaher (NYSE: DHR)
Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher (NYSE: DHR) is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.
Danaher reported revenues of $5.74 billion, flat year on year, outperforming analysts’ expectations by 2.7%. The business had a very strong quarter with an impressive beat of analysts’ organic revenue and EPS estimates.
The market seems content with the results as the stock is up 2.4% since reporting. It currently trades at $189.18.
Is now the time to buy Danaher? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Avantor (NYSE: AVTR)
With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.
Avantor reported revenues of $1.58 billion, down 5.9% 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 and EPS estimates.
Avantor delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 15% since the results and currently trades at $13.15.
Read our full analysis of Avantor’s results here.
Bio-Techne (NASDAQ: TECH)
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Bio-Techne reported revenues of $316.2 million, up 4.2% year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is up 2.6% since reporting and currently trades at $48.87.
Read our full, actionable report on Bio-Techne here, it’s free.
Waters Corporation (NYSE: WAT)
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Waters Corporation reported revenues of $661.7 million, up 3.9% year on year. This number surpassed analysts’ expectations by 1.2%. Overall, it was a satisfactory quarter as it also logged a narrow beat of analysts’ organic revenue estimates.
The stock is up 2.8% since reporting and currently trades at $358.36.
Read our full, actionable report on Waters Corporation here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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