Quarterly Revenue: Grew by 3% to $303.4 million, with 1% of this growth attributed to acquisitions.
Adjusted EPS: Declined to $0.48 from $0.53 in the same quarter of the prior year.
GAAP EPS: Decreased to $0.31 from $0.43 year-over-year.
Adjusted Gross Margin: Reported at 71.9%, a slight decline from 72.6% previously.
Operating Margin for Protein Sciences Segment: Dropped by 90 basis points to 44.2% year-over-year.
Diagnostics and Genomics Segment Revenue: Increased by 16% to $87.5 million, with a 10% organic revenue growth.
Future Guidance
Q4 Expectations: The company anticipates its performance to mirror Q3 levels, anticipating stable markets, especially in the biotech sector and China region.
Revenue and Margin Improvement: Forecasts incremental sequential revenue and adjusted operating margin improvements in Q4 compared to Q3.
FY25 Outlook: The company is closely monitoring the impact of increased biotech funding and Chinese government stimulus for adjustments to their fiscal year 2025 outlook and operating plans.
Trends, Market Conditions, Sentiment
Market Stabilization: Early signs suggest stabilization in the biopharma end markets and the China region, with expectations of improvement in the latter half of the year.
Challenge in China: Although there’s a recognition that returning to accelerated growth in China might be slower, there’s confirmation of business stabilization there.
Growth Pillars Performance: Noteworthy performance in areas such as cell and gene therapy, proteomic analysis solutions, spatial biology technology, and liquid biopsy platforms.
Cost Management: The company remains focused on profitability through efficiency improvements while continuing to invest for future growth.
Future Growth Enablers: The recovery in biotech funding and economic stimulus from the Chinese government are being closely monitored as potential drivers of future revenue growth.
Notable Quotes
”I’m pleased to report that our third quarter outperformed our initial expectations…” - Kim Kelderman, President and CEO.
”These growth pillars enabled by our leading portfolio of proteomic reagents and assays remain and clearly well-positioned to enable our customers to improve the quality of life…” - Kim Kelderman.
”It appears as though the worst of the China slowdown is behind us at this point."
"M&A remains a top priority for capital allocation.” - James Hippel, CFO.
”…expect that gap in our performance relative to the market to be at least the same, if not better.” - James Hippel on future growth relative to the market.
