It has been about a month since the last earnings report for Techne (TECH). Shares have lost about 15.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Techne due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Bio-Techne's Q2 Earnings, Revenues Beat
Bio-Techne reported second-quarter fiscal 2026 adjusted earnings per share of 46 cents, which surpassed the Zacks Consensus Estimate by 8.2%. The bottom line was up 9.5% on a year-over-year basis.
The quarter's adjustments eliminated the impact of certain one-time items, including amortization of Wilson Wolf intangible assets, and restructuring and restructuring-related costs, among others.
GAAP earnings per share was 24 cents compared with 22 cents in the prior-year quarter.
Revenues in Detail
Bio-Techne registered net sales of $295.9 million, reflecting a marginal decline of 0.4% year over year on a reported basis. The figure remained flat on an organic basis. The top line surpassed the Zacks Consensus Estimate by 1.3%.
Segmental Analysis
The company reports under two business segments — Protein Sciences, and Diagnostics and Spatial Biology (formerly Diagnostics and Genomics).
Within Protein Sciences, Bio-Techne recorded revenues of $215.1 million, up 2% year over year (down 1% organically). In fiscal 2024, a business within this segment met the criteria as held-for-sale, excluded from its operating results.
Within Diagnostics and Spatial Biology, sales decreased 4% year over year to $81.2 million (up 3% organically) in the fiscal second quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.
Margins
Bio-Techne’s gross profit fell 1.3% to $191.3 million. The gross margin contracted 63 basis points (bps) to 64.6% on a 1.4% rise in the cost of sales.
Selling, general and administrative expenses declined 6.4% to $113.7 million. Research and development expenses totaled $23.1 million, down 7.6% year over year.
The company generated an operating profit of $54.5 million in the fiscal second quarter compared with the year-ago quarter’s figure of $47.4 million. The operating margin expanded 244 bps to 18.4% during the quarter.
Capital Structure
Bio-Techne exited the fiscal second quarter of 2026 with cash and equivalents of $172.9 million compared with $145 million at the end of the fiscal first quarter. Long-term debt obligations totaled $260 million compared with $300 million in the previous quarter.
Cumulative net cash provided by operating activities was $110 million at the end of the fiscal second quarter compared with $148.2 million a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Techne has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Techne has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Bio-Techne Corp (TECH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
