Bio-Techne's first quarter results were met with a positive market reaction as the company delivered both organic revenue growth and adjusted profit above Wall Street expectations. Management attributed this momentum to robust demand from large pharmaceutical customers, particularly in its core reagents and protein analysis tools, as well as continued execution on cost control and operational efficiency. CEO Kim Kelderman highlighted the company's ability to manage profitability despite an uncertain macro environment, pointing to "strong execution across our product portfolio" and initiatives to drive operational efficiencies. The team noted that these gains were achieved even as the academic research market in the United States faced headwinds related to changes in federal funding policies.
Is now the time to buy TECH? Find out in our full research report (it’s free).
Bio-Techne (TECH) Q1 CY2025 Highlights:
- Revenue: $316.2 million vs analyst estimates of $317.4 million (4.2% year-on-year growth, in line)
- Adjusted EPS: $0.56 vs analyst estimates of $0.51 (10.4% beat)
- Adjusted EBITDA: $119.1 million vs analyst estimates of $114.1 million (37.7% margin, 4.3% beat)
- Operating Margin: 12.2%, down from 22.1% in the same quarter last year
- Organic Revenue rose 5.7% year on year (2.3% in the same quarter last year)
- Market Capitalization: $8.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Bio-Techne’s Q1 Earnings Call
-
Puneet Souda (Leerink Partners) asked about the impact of academic funding uncertainty and potential pull-forward in pharma orders. CFO Jim Hippel clarified that pharma growth was sustained, not the result of early demand, and academic headwinds were most pronounced after policy announcements.
-
Dan Leonard (UBS) questioned the company’s tariff exposure and manufacturing flexibility. CEO Kim Kelderman explained that regional manufacturing and supply chain adjustments largely insulated Bio-Techne from tariff impacts, especially regarding instruments and consumables exported to China.
-
Matt Larew (William Blair) sought clarity on the sustainability of organic growth rates and margin outperformance. Hippel responded that recent margin improvements were due to disciplined cost controls, and any temporary slowdown from macro headwinds should reverse once uncertainty resolves.
-
Daniel Markowitz (Evercore ISI) asked whether projected academic headwinds would meaningfully impact long-term growth assumptions. Hippel stated that even in severe budget cut scenarios, academic exposure is limited and the company’s strategic plan still targets double-digit growth.
-
Patrick Donnelly (Citi) inquired about trends among biotech customers and the performance of the Wilson Wolf joint venture. Kelderman noted that biotech demand was flat, reflecting sensitivity to broader capital markets, while Wilson Wolf continued to deliver solid double-digit growth.
Catalysts in Upcoming Quarters
Over the next few quarters, our analyst team will be monitoring (1) clarity in NIH funding and U.S. academic research budgets, (2) the pace and effectiveness of tariff mitigation efforts on global operations, and (3) further adoption of new product platforms in organoid solutions and spatial biology. Progress in margin improvement initiatives and the performance of China and biotech customer segments will also be important indicators.
Bio-Techne currently trades at $53, up from $47.64 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
Our Favorite Stocks Right Now
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
