Azenta Inc (AZTA) Reports Revenue Growth in Q4 and FY 2023 Despite Earnings Pressure
Azenta Inc (NASDAQ:AZTA) announces a 25% increase in Q4 revenue and a 20% increase for the full fiscal year.
Despite revenue growth, the company experiences a decline in adjusted EBITDA and non-GAAP diluted EPS for both periods.
Azenta Inc (NASDAQ:AZTA) plans to repurchase an additional $500 million in shares under its existing program in fiscal 2024.
Company provides positive guidance for fiscal 2024, expecting organic revenue growth of 5 to 8%.
On November 13, 2023, Azenta Inc (NASDAQ:AZTA) released its 8-K filing, detailing its fourth quarter and full fiscal year 2023 financial results. The company reported a robust 25% increase in revenue for the quarter ended September 30, 2023, compared to the same period in 2022, and a 20% increase for the full year. However, the company faced challenges with a 16% decline in adjusted EBITDA and a 19% decrease in non-GAAP diluted EPS from continuing operations for the quarter. For the full year, adjusted EBITDA and non-GAAP diluted EPS from continuing operations decreased by 51% and 39%, respectively.
Financial Highlights
Azenta Inc (NASDAQ:AZTA) saw significant growth in its Life Sciences Products segment, with a 70% increase in quarterly revenue and a 53% increase for the full year. The Life Sciences Services segment reported a modest 1% growth for both the quarter and the full year. GAAP diluted EPS from continuing operations improved significantly, turning positive at $0.05 for the quarter, compared to a loss of $(0.07) in the same quarter last year. However, the full-year GAAP diluted EPS from continuing operations declined to $(0.19) from $(0.15) in the previous year.
Management Commentary
Steve Schwartz, President and CEO of Azenta Inc (NASDAQ:AZTA), commented on the results, stating,
We ended fiscal 2023 strong, delivering an impressive fourth quarter result amidst a still-challenging macroeconomic backdrop."
He expressed confidence in the company's outlook for fiscal 2024, highlighting initiatives such as cost reduction programs and strategic investments in the sales force.
Share Repurchase Program and Fiscal 2024 Outlook
The company also announced plans to repurchase an additional $500 million in shares under its existing share repurchase program in fiscal 2024. This move underscores Azenta Inc (NASDAQ:AZTA)'s commitment to driving long-term shareholder value through disciplined capital deployment. With a strong balance sheet and approximately $500 million in cash, the company is well-positioned to allocate capital strategically.
Operational and Financial Analysis
While the revenue growth is a positive sign, the decline in adjusted EBITDA and non-GAAP EPS indicates pressure on earnings quality and profitability. The company's focus on cost reduction and sales force investment may help improve margins and earnings in the coming fiscal year. The additional share repurchase program could also contribute to earnings per share improvement through a reduction in the number of shares outstanding.
Azenta Inc (NASDAQ:AZTA) provided guidance for fiscal 2024, expecting to achieve organic revenue growth of 5 to 8%, continued margin expansion, and positive free cash flow. This outlook suggests that management is optimistic about the company's ability to navigate the challenging macroeconomic environment and continue its growth trajectory.
For a detailed review of Azenta Inc (NASDAQ:AZTA)'s financial statements and the reconciliation of non-GAAP measures, readers are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from Azenta Inc for further details.
This article first appeared on GuruFocus.
