Overview

• Azenta Q3 revenue flat yr/yr at $144 mln, missing analysts' expectations

• Non-GAAP diluted EPS from continuing ops rises to $0.19

• Adjusted EBITDA increases to $18 mln, margin rises 260 basis points to 12.3%

Outlook

• Azenta reiterates fiscal 2025 organic revenue growth of 3% to 5%

• Company expects adjusted EBITDA margin to expand by 300 bps in fiscal 2025

Result Drivers

• MULTIOMICS GROWTH - Revenue increased 4% driven by Next Generation Sequencing, partially offset by declines in Sanger Sequencing and Gene Synthesis

• SAMPLE MANAGEMENT DECLINE - Revenue decreased 4% due to lower sales in Automated Stores and Cryogenic Systems, despite gains in Sample Storage and Clinical Biostores

• MARGIN EXPANSION - Gross margin improved by 170 basis points due to favorable sales mix and cost execution

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy."

• Wall Street's median 12-month price target for Azenta Inc is $32.50, about 0.3% above its August 4 closing price of $32.41

• The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 39 three months ago

Press Release: ID:nPn2g4HjLa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)