Techne (TECH) Down 15.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Techne (TECH). Shares have lost about 15.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Techne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Bio-Techne Tops Q2 Earnings and Revenue EstimatesBio-Techne reported second-quarter fiscal 2025 adjusted earnings per share of 42 cents, which exceeded the Zacks Consensus Estimate by 10.5%. The bottom line improved from the year-ago figure of 40 cents.The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles, amortization of Wilson Wolf intangible assets and acquired inventory and restructuring and restructuring-related costs among others.  GAAP earnings per share was 22 cents compared with 17 cents in the prior-year quarter.Q2 Revenues in DetailBio-Techne registered net sales of $297.0 million, up 9% year over year on a reported basis and 9% on an organic basis. The figure also topped the Zacks Consensus Estimate by 4.1%.Quarter in DetailsThe company reports under two business segments — Protein Sciences and Diagnostics and Genomics.Within Protein Sciences, Bio-Techne recorded revenues of $211.6 million, up 7% year over year (up 8% organically). As of Dec. 31, 2023, a business within the Protein Sciences Segment met the criteria as held-for-sale. This business has been excluded from the segment's fiscal 2025 operating results. This exclusion reduced total sales by 1%.Within Diagnostics and Genomics, sales improved 12% to $84.1 million (up 12% organically as well) in the fiscal second quarter.Margin TrendBio-Techne’s gross profit edged up 9.8% to $193.9 million. Gross margin expanded 50 basis points (bps) to 65.3% despite a 7.4% rise in cost of sales.Selling, general and administrative expenses escalated 5% to $121.4 million. Research and development expenses totaled $25 million, up 9.2% year over year. Total operating expenses were $146.5 million, up 5.7% from the prior-year quarter’s level.Operating margin expanded a huge 202 bps to 16% in the reported quarter.Capital StructureBio-Techne exited the fiscal second quarter with cash and equivalents and short-term available-for-sale investments of $177.5 million compared with $152.9 million at the end of the first quarter of fiscal 2025. Long-term debt obligations totaled $300 million at the end of the reported quarter compared with $319 million at the end of the fiscal first quarter.Cumulative net cash provided by operating activities was $148.2 million at the end of the second quarter compared with $142.5 million a year ago.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresAt this time, Techne has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, Techne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bio-Techne Corp (TECH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks