Overview

* Mesa Laboratories ( MLAB ) fiscal Q2 revenue grows 5%, operating income rises 34.7%

* Net income for fiscal Q2 decreases 27.8% compared to prior year

* Biopharmaceutical Development and Calibration Solutions show strong growth despite CG challenges

Outlook

* Mesa expects sequential revenue growth in 3Q26

* Company plans to reinvest $0.9M savings into SDC for long-term growth

* Mesa anticipates continued revenue declines in China for FY26

Result Drivers

* BPD GROWTH - Biopharmaceutical Development division saw strong revenue growth driven by higher sales of Peptides instruments and delayed bookings from 1Q26

* COST REDUCTIONS - Mesa reduced annualized costs by $3.2M to align with global tariffs and currency headwinds, with $2.1M reductions in CG

* CG CHALLENGES - Clinical Genomics division faced a 58% revenue decline in China due to macroeconomic and regulatory headwinds

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS $0.45

Q2 Net $2.48

Income mln

Q2 Basic $0.45

EPS

Q2 Gross $37.33

Profit mln

Q2 $32.61

Operatin mln

g

Expenses

Q2 $4.72

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for Mesa Laboratories Inc ( MLAB ) is $88.50, about 16.2% above its November 5 closing price of $74.20

* The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 40 three months ago

Press Release:

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(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.)