Looking back on research tools & consumables stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Sotera Health Company (NASDAQ:SHC) 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 12.6% since the latest earnings results.
Sotera Health Company (NASDAQ:SHC)
Founded in 2017, Sotera Health (NASDAQ:SHC) provides sterilization, laboratory testing, and consulting services to the medical device, pharmaceutical, and biotechnology
Sotera Health Company reported revenues of $290.2 million, down 6.5% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ full-year EPS guidance estimates and organic revenue in line with analysts’ estimates.
“I am pleased to announce another year of top- and bottom-line growth in 2024. This marks the 19th consecutive year of annual revenue growth for the company,” said Chairman and Chief Executive Officer, Michael B. Petras,
Sotera Health Company delivered the slowest revenue growth of the whole group. The stock is down 12.8% since reporting and currently trades at $11.89.
Read our full report on Sotera Health Company here, it’s free.
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 an impressive 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 to its peers, the market seems unhappy with the results as the stock is down 18.8% since reporting. It currently trades at $59.
Is now the time to buy Bio-Techne? Access our full analysis of the earnings results here, it’s free.
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 21.9% since the results and currently trades at $16.93.
Read our full analysis of Avantor’s results here.
Waters Corporation (NYSE:WAT)
Founded in 1958, Waters Corporation (NYSE:WAT) develops and manufactures high-performance liquid chromatography (HPLC), mass spectrometry (MS), and thermal analysis systems for laboratories.
Waters Corporation reported revenues of $872.7 million, up 6.5% year on year. This result topped analysts’ expectations by 1.9%. Zooming out, it was a decent quarter as it also recorded an impressive beat of analysts’ organic revenue estimates.
The stock is down 6.5% since reporting and currently trades at $379.20.
Read our full, actionable report on Waters Corporation here, it’s free.
Agilent (NYSE:A)
A 1999 spin-off of Hewlett-Packard, Agilent Technologies (NYSE:A) offers analytical instruments, software, and services for laboratories in healthcare, environmental sciences, and food safety.
Agilent reported revenues of $1.68 billion, up 1.4% year on year. This number beat analysts’ expectations by 0.6%. Zooming out, it was a slower quarter as its performance in some other parts of the business was disappointing.
The stock is down 9.2% since reporting and currently trades at $121.99.
Read our full, actionable report on Agilent here, it’s free.
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