Overview

* Azenta ( AZTA ) 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 ( AZTA ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $144 mln $149.40

Revenue mln (8

Analysts

)

Q3 $18 mln

Adjusted

EBITDA

Q3 Gross 47.1%

Margin

Q3 12.3%

Adjusted

EBITDA

Margin

Q3 -$700,00

Operatin 0

g Income

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 ( AZTA ) 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:

(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.)