Bio-Techne Corporation Just Missed EPS By 36%: Here's What Analysts Think Will Happen Next
Last week, you might have seen that Bio-Techne Corporation (NASDAQ:TECH) released its quarterly result to the market. The early response was not positive, with shares down 9.2% to US$65.98 in the past week. It looks like a pretty bad result, all things considered. Although revenues of US$273m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 36% to hit US$0.17 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Bio-Techne
Taking into account the latest results, Bio-Techne's twelve analysts currently expect revenues in 2024 to be US$1.15b, approximately in line with the last 12 months. Statutory earnings per share are expected to plunge 22% to US$1.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$1.17b and earnings per share (EPS) of US$1.33 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
The analysts made no major changes to their price target of US$80.36, suggesting the downgrades are not expected to have a long-term impact on Bio-Techne's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bio-Techne at US$95.00 per share, while the most bearish prices it at US$65.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Bio-Techne's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bio-Techne.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$80.36, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Bio-Techne. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bio-Techne going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Bio-Techne , and understanding it should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
