Adjusted Operating Margin: Increased sequentially by 290 basis points to 33%.
Quarterly Revenue: $303.4 million, a 3% increase on a reported basis, with acquisitions contributing 1% to reported growth.
Adjusted EPS: $0.48 compared to $0.53 in the prior year quarter.
GAAP EPS: $0.31 compared to $0.43 in the prior year.
Adjusted Gross Margin: 71.9%, slightly lower than the 72.6% in the same quarter of the prior year.
Operating Margin for Protein Sciences Segment: 44.2%, a decrease of 90 basis points year-over-year.
Diagnostics and Genomics Segment Revenue: $87.5 million, with reported growth increasing 16% compared to the same quarter last year and organic revenue growth up 10%.
Future Guidance
Q4 Expectations: Expecting a performance similar to Q3 with stable markets, especially in the biotech end market and the China region.
Incremental Revenue and Margin Improvement: Anticipating incremental sequential improvement in revenue and adjusted operating margins in Q4 relative to Q3.
Monitoring for FY25 Outlook: Closely watching the impact of recent increases in biotech funding and Chinese government stimulus for fiscal year 2025 outlook and operating plans.
Trends, Market Conditions, Sentiment
Market Stabilization: Indications of biopharma end markets and the China region stabilizing with early signs that markets will improve in the second half of the calendar year.
Challenge in China: Recognizing that the path back to accelerated growth in China may take longer than previous cycles but confirming stabilization of the business there.
Growth Pillars Performance: Notably strong performance in cell and gene therapy, proteomic analysis solutions, spatial biology technology, and liquid biopsy platform.
Cost Management and Structural Alignments: Ongoing focus on profitability through efficiency drives across the organization while investing for future growth.
Future Growth Enablers: Monitoring biotech funding recovery and Chinese government’s economic stimulus plans as key factors that could drive 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.
