Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Azenta (NASDAQ:AZTA) and its peers.
Companies specializing in drug development inputs and services play a crucial role in the pharmaceutical and biotechnology value chain. Essential support for drug discovery, preclinical testing, and manufacturing means stable demand, as pharmaceutical companies often outsource non-core functions with medium to long-term contracts. However, the business model faces high capital requirements, customer concentration, and vulnerability to shifts in biopharma R&D budgets or regulatory frameworks. Looking ahead, the industry will likely enjoy tailwinds such as increasing investment in biologics, cell and gene therapies, and advancements in precision medicine, which drive demand for sophisticated tools and services. There is a growing trend of outsourcing in drug development for nimbleness and cost efficiency, which benefits the industry. On the flip side, potential headwinds include pricing pressures as efforts to contain healthcare costs are always top of mind. An evolving regulatory backdrop could also slow innovation or client activity.
The 8 drug development inputs & services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.8%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13% since the latest earnings results.
Best Q4: Azenta (NASDAQ:AZTA)
Founded as a small biotech firm, Azenta (NASDAQ:AZTA) provides services for life sciences research and biopharmaceutical applications such as sample management, cold chain logistics, and storage services.
Azenta reported revenues of $147.5 million, up 4.1% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates.
The stock is down 20.4% since reporting and currently trades at $41.39.
Is now the time to buy Azenta? Access our full analysis of the earnings results here, it’s free.
UFP Technologies (NASDAQ:UFPT)
Founded in 1963, UFP Technologies (NASDAQ:UFPT) designs and manufactures medical products, sterile packaging, and other highly-engineered custom products for healthcare settings.
UFP Technologies reported revenues of $144.1 million, up 41.9% year on year, outperforming analysts’ expectations by 1.7%. The business had a strong quarter with a decent beat of analysts’ EPS estimates.
UFP Technologies delivered the fastest revenue growth 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 11.1% since reporting. It currently trades at $213.82.
Is now the time to buy UFP Technologies? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Fortrea (NASDAQ:FTRE)
Spun off from Labcorp in 2023, Fortrea Holdings (NASDAQ:FTRE) provides contract research and development services for pharmaceutical and biotechnology companies, specializing in clinical trials, laboratory services, and data management.
Fortrea reported revenues of $697 million, down 1.8% year on year, falling short of analysts’ expectations by 0.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Fortrea delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. As expected, the stock is down 31.3% since the results and currently trades at $9.52.
Read our full analysis of Fortrea’s results here.
Repligen (NASDAQ:RGEN)
Founded in 1981, Repligen Corporation (NASDAQ:RGEN) develops and manufactures advanced products used in the production of drugs, with a focus on filtration, chromatography, and process analytics.
Repligen reported revenues of $167.5 million, flat year on year. This print was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also recorded a solid beat of analysts’ organic revenue estimates.
Repligen pulled off the highest full-year guidance raise among its peers. The stock is down 3.1% since reporting and currently trades at $146.23.
Read our full, actionable report on Repligen here, it’s free.
West Pharmaceutical Services (NYSE:WST)
Founded in 1923, West Pharmaceutical Services (NYSE:WST) develops innovative injectable drug packaging and delivery solutions, focusing on safe and effective medication containment.
West Pharmaceutical Services reported revenues of $748.8 million, up 2.3% year on year. This result topped analysts’ expectations by 1.2%. Taking a step back, it was a softer quarter as it recorded full-year revenue guidance missing analysts’ expectations.
The stock is down 28.3% since reporting and currently trades at $231.60.
Read our full, actionable report on West Pharmaceutical Services here, it’s free.
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