As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at research tools & consumables stocks, starting with Mettler-Toledo (NYSE: MTD).
The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.
The 10 research tools & consumables stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 0.5% below.
Luckily, research tools & consumables stocks have performed well with share prices up 10.9% on average since the latest earnings results.
Mettler-Toledo (NYSE: MTD)
With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo (NYSE: MTD) manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.
Mettler-Toledo reported revenues of $983.2 million, up 3.9% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates.
Patrick Kaltenbach, President and Chief Executive Officer, stated, “We are pleased with our second quarter results and experienced growth throughout most of our business despite challenging market conditions. Our team performed extremely well, and we continue to benefit from our innovative product portfolio and strategic programs, which resulted in solid EPS growth in the quarter.”
Interestingly, the stock is up 5.9% since reporting and currently trades at $1,308.
Is now the time to buy Mettler-Toledo? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q2: Sotera Health Company (NASDAQ: SHC)
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Sotera Health Company reported revenues of $294.3 million, up 6.4% year on year, outperforming analysts’ expectations by 6.8%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates.
Sotera Health Company delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 40.4% since reporting. It currently trades at $15.78.
Is now the time to buy Sotera Health Company? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q2: Bruker (NASDAQ: BRKR)
With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ: BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.
Bruker reported revenues of $797.4 million, flat year on year, falling short of analysts’ expectations by 1.5%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
Bruker delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. As expected, the stock is down 4.4% since the results and currently trades at $36.31.
Read our full analysis of Bruker’s results here.
Bio-Techne (NASDAQ: TECH)
With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ: TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.
Bio-Techne reported revenues of $317 million, up 3.5% year on year. This result topped analysts’ expectations by 0.7%. It was a satisfactory quarter as it also put up a beat of analysts’ EPS estimates.
The stock is up 9.7% since reporting and currently trades at $59.90.
Read our full, actionable report on Bio-Techne here, it’s free for active Edge members.
Waters Corporation (NYSE: WAT)
Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.
Waters Corporation reported revenues of $771.3 million, up 8.9% year on year. This number beat analysts’ expectations by 3.3%. Aside from that, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a slight miss of analysts’ EPS guidance for next quarter estimates.
The stock is up 13.7% since reporting and currently trades at $330.45.
Read our full, actionable report on Waters Corporation here, it’s free for active Edge members.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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