BIO - Thermo Fisher Danaher among decliners as Sartorius disappoints with Q1

2023-04-20 10:14:49 ET

Shares of Life Sciences tool makers Thermo Fisher Scientific ( TMO ), Danaher Corporation ( DHR ), Repligen ( RGEN ), and Bio-Rad Laboratories ( BIO ) came under pressure after their EU peer Sartorius ( OTCPK:SARTF ) disappointed with its Q1 2023 earnings.

German-listed shares of Sartorius ( OTCPK:SARTF ) lost ~11% after the global provider of bioprocess solutions and lab products/ services announced Q1 revenue and earnings that stood below analysts' expectations on Thursday.

As demand continued to normalize across all regions, sales revenue for the quarter plunged ~12% YoY to €903.2M ($989.5M) with almost no contribution from COVID-related sales.

"As expected, the vanishing Covid-19-related business and the ongoing destocking activities by customers are clearly reflected in the sales revenue development of the bioprocessing division, and to a lesser extent in the laboratory division," CEO Joachim Kreuzburg remarked.

The Bioprocess Solutions division was severely hit by demand normalization as its revenue plunged ~15% YoY to €695M while order intake dropped ~36% YoY to €576M mainly due to the reduction of inventories that customers had stockpiled during the pandemic.

While its overall net profit fell ~55% YoY to €93.1M, Sartorius ( OTCPK:SARTF ) opted to keep its full-year outlook unchanged despite macro and political uncertainties. "However, we are monitoring the potential impact of the current global tensions on our industry very closely," Kreuzburg added.

Read: Despite near-term COVID headwinds, Seeking Alpha analyst Nicholas Ward issued a Buy rating on Danaher ( DHR ) on Thursday, citing its long-term outlook and potential for dividend growth.

For further details see: