A month has gone by since the last earnings report for Techne (TECH). Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Techne due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Bio-Techne Corp before we dive into how investors and analysts have reacted as of late.
TECH Q3 Earnings & Revenue Miss, Operating Margin Up
Bio-Technereported third-quarter fiscal 2026 adjusted earnings per share of 53 cents, which missed the Zacks Consensus Estimate by 2.8%. The bottom line was down 5.4% 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 32 cents compared with 14 cents in the prior-year quarter.
Revenues in Detail
Bio-Techne registered net sales of $311.4 million, reflecting a decline of 1.5% year over year on a reported basis. The figure was down 2% on an organic basis. The top line missed the Zacks Consensus Estimate by 2.4%.
Following the announcement, shares of Bio-Techne declined 1.2% in pre-market trading yesterday, reflecting investor reaction to the company’s quarterly sales and earnings decline.
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 $226.2 million, down 1% year over year (down 4% 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 $85.6 million (up 3% organically) in the fiscal third quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.
Q3 Margins
Bio-Techne’s gross profit fell 2.9% to $208.3 million. The gross margin contracted 97 basis points (bps) to 66.9% on a 1.5% rise in the cost of sales.
Selling, general and administrative expenses declined 27.7% to $109.3 million. Research and development expenses totaled $23.4 million, down 4.6% year over year.
The company generated an operating profit of $75.5 million in the fiscal third quarter compared with the year-ago quarter’s figure of $38.7 million. The operating margin expanded 1200 bps to 24.2% during the quarter.
Capital Structure
Bio-Techne exited the fiscal third quarter of 2026 with cash and equivalents of $209.8 million compared with $172.9 million at the end of the fiscal second quarter. Long-term debt obligations totaled $200 million compared with $260 million in the previous quarter.
Cumulative net cash provided by operating activities was $196.7 million compared with $189.3 million a year ago.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.01% due to these changes.
VGM Scores
At this time, Techne has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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. It's no surprise Techne has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Techne is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Krystal Biotech, Inc. (KRYS), a stock from the same industry, has gained 3.7%. The company reported its results for the quarter ended March 2026 more than a month ago.
Krystal Biotech reported revenues of $116.36 million in the last reported quarter, representing a year-over-year change of +32%. EPS of $1.83 for the same period compares with $1.20 a year ago.
For the current quarter, Krystal Biotech is expected to post earnings of $1.81 per share, indicating a change of +40.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Krystal Biotech has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).