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Bio-Techne Q4 Earnings Beat Estimates, Gross Margin Down, Stock Falls

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Key Takeaways

  • {\"0\":\"TECH posted Q4 adjusted EPS of $0.53, beating estimates and rising from $0.49 last year.\",\"1\":\"Bio-Techne\'s revenues rose 3.5% to $317M; Protein Sciences grew 6%, offsetting a 1% Diagnostics dip.\",\"2\":\"TECH\'s gross margin dropped 371 bps to 62.7% as costs jumped 15%, leading to a $23.9M operating loss.\"}

Bio-Techne (TECH - Free Report) reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of 53 cents, which surpassed the Zacks Consensus Estimate by 6%. The bottom line improved from the year-ago figure of 49 cents.

The quarter's adjustments eliminated the impact of certain one-time items, including amortization of intangibles and Wilson Wolf intangible assets, acquired inventory, and restructuring and restructuring-related costs, among others.

GAAP loss per share was 11 cents compared to EPS of 25 cents in the prior-year quarter.

For the full year, adjusted EPS of $1.92 topped the Zacks Consensus Estimate by 1.1%. The metric increased 8.5% from the fiscal 2024 adjusted figure.

TECH's Revenues in Detail

In the fiscal fourth quarter, Bio-Techne registered net sales of $316.9 million, up 3.5% year over year on a reported basis and 3% on an organic basis. The figure surpassed the Zacks Consensus Estimate by 0.48%.

Full-year revenues were $1.22 billion, a 5.2% improvement on a reported basis from fiscal 2024 (up 5% organically). The metric matched the Zacks Consensus Estimate.

Following the earnings announcement, shares of TECH dipped 1.2% in pre-market trading today.

Segmental Analysis of TECH’s Q4 Revenues

The company reports under two business segments — Protein Sciences, and Diagnostics and Spatial Biology (formerly Diagnostics and Genomics).

Within Protein Sciences, Bio-Techne recorded revenues of $226.5 million, up 6% year over year (up 4% organically). In fiscal 2024, a business within this segment met the criteria as held-for-sale, which has been excluded from its operating results.

Bio-Techne Corp Price, Consensus and EPS Surprise

Bio-Techne Corp Price, Consensus and EPS Surprise

Bio-Techne Corp price-consensus-eps-surprise-chart | Bio-Techne Corp Quote

Within Diagnostics and Spatial Biology, sales decreased 1% year over year to $89.7 million (down 1% organically as well) in the fiscal fourth quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria on June 30, 2025 and incurred an impairment loss of $83.1 million during the quarter.

TECH’s Q4 Margins

Bio-Techne’s gross profit fell 2.2% to $198.8 million. The gross margin contracted 371 basis points (bps) to 62.7% on a 15% rise in the cost of sales.

Selling, general and administrative expenses escalated 47.2% to $196.6 million. Research and development expenses totaled $26 million, up 8.5% year over year. Total operating expenses were $222.7 million, up 41.4% from the prior-year quarter’s level.

The company generated an operating loss of $23.9 million in the fiscal fourth quarter compared to the $45.8 million operating profit in the year-ago quarter.

Bio-Techne’s Capital Structure

Bio-Techne exited the fiscal fourth quarter with cash and equivalents of $162.2 million compared with $151.8 million at the end of fiscal 2024. Long-term debt obligations totaled $346 million at the end of the reported quarter compared with $319 million at the end of the prior-year quarter.

Cumulative net cash provided by operating activities was $287.6 million at the end of the fiscal fourth quarter compared with $299 million a year ago.

Our Take on Bio-Techne’s Results

Bio-Techne exited the fourth quarter of fiscal 2025 with both earnings and revenues beating respective estimates. Despite ongoing market uncertainty, the results came in line with the company’s expectations. Performance in cell therapy and protein analysis instrumentation growth pillars was particularly strong, supported by a resilient pharma market. Further, Bio-Techne’s latest decision to divest the Exosome Diagnostics business is expected to boost profitability on an immediate basis and allow it to increase focus on high-growth areas, particularly tools for research and precision diagnostics.

However, the contraction of the gross margin and a negative operating income in the quarter are discouraging.

TECH's Zacks Rank and Key Picks

Bio-Techne currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Boston Scientific (BSX - Free Report) .

Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.

MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.

GeneDx Holdings, sporting a Zacks Rank #1 at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.

WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 231.40%.

Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.

BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.11%.

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