Azenta Shares Plunge After Q3 Preliminary Results

Azenta Shares Plunge After Q3 Preliminary Results
  • Azenta, Inc. (NASDAQ AZTA) reported preliminary results for the third quarter. It expects revenue of ~$133 million, an increase of 3% year-over-year, versus the consensus of $143.52 million.
  • The company sees GAAP diluted EPS from continuing operations in the range of ($0.13) to ($0.08) and Non-GAAP diluted EPS of $0.08 to $0.12, versus a consensus of $0.11.
  • Azenta stated that revenue for the Services segment is expected to be ~$85 million, up 6% Y/Y; for the Product segment, it is expected to be ~$47 million, down 3% Y/Y.
  • The company mentioned that the Consumables and Instruments (C&I) business experienced lower demand than expected, with an estimated decline of 18% Y/Y.
  • The balance of the Products segment revenue grew ~23% Y/Y supported by strong double-digit growth in each area of large systems, cryogenic systems, and product services.
  • "Revenue in the third quarter reflects currency headwinds and softness in the highly transactional businesses of Genomics Services and C&I, while other areas of the portfolio remained on track as evidenced by the strength in ultra-cold automation and Sample Repository Solutions," stated Steve Schwartz, President, and CEO.
  • Price Action: AZTA shares are trading lower by 12.35% at $65 during the post-market session on Wednesday.

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