Analyst Says Azenta's B-Medical Buyout Will Not Deliver As Promised

  • KeyBanc Capital Markets analyst Paul Knight downgraded Azenta Inc AZTA to Sector Weight from Overweight
  • The analyst is unimpressed with the company's below-consensus Q2 FY23 results and 2022 acquisition of B- Medical falling below the initial guidance.
  • The company reported Q2 FY23 revenues of $148.4 million missing the consensus of $161.9 million, and adjusted EPS of $(0.06), worse than the consensus of $(0.02)
  • Knight sees Azenta's FY23 guidance reduction for revenues to $645 million-$675 million (vs. around $722 million earlier) on lower revenues from B Medical and customer inventory destocking in the Consumables & Instruments division as a matter of concern.
  • The analyst reduced expectations for 2023 revenues and adjusted EPS to $645.0 million (vs. $698.4 million earlier, consensus: $692.7 million) and $0.01 (from $0.40 earlier, consensus: $0.28), respectively.
  • Price Action: AZTA shares are trading lower by 18.1% at $36.81 on the last check Wednesday.
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