Crispr Therapeutics shares tumble after significant earnings miss
On Thursday, KeyBanc analysts adjusted their stance on Standard BioTools Inc (NASDAQ: LAB), lowering the stock’s rating from Overweight to Sector Weight following the company’s financial outlook for 2025. The stock, which has declined over 46% in the past six months and is currently trading near its 52-week low, appears undervalued according to InvestingPro analysis. The downgrade comes after Standard BioTools reported its fourth-quarter 2024 results and provided initial 2025 revenue guidance that fell short of expectations. The company forecasted revenue in the range of $165 million to $175 million, whereas the consensus estimate was $186.9 million, with KeyBanc’s own estimate slightly lower at $185.0 million. This guidance represents a roughly 3% decline at the midpoint.
Standard BioTools attributed its conservative revenue outlook to the proposed budget cuts to the National Institutes of Health (NIH) by the White House. Since NIH funding accounts for approximately 10% of the company’s revenue and academic institutions make up about a third of its total revenue, the potential reduction in NIH spending could lead to cautious expenditure among its academic customers. Despite these challenges, the company maintains a strong liquidity position with a current ratio of 5.7 and holds more cash than debt on its balance sheet, according to InvestingPro data.
Despite the lowered expectations, there was a positive development earlier in the year. On January 13, Illumina Inc (NASDAQ:ILMN) announced the initiation of a pilot proteomics program that will analyze 50,000 samples from the U.K. Biobank. The program will utilize Illumina’s forthcoming proteomics assay, Illumina Protein Prep, which is powered by Standard BioTools’ SOMAamer technology. This next-generation sequencing (NGS) solution is anticipated to enhance proteomic discovery significantly. Commercial release of the technology is expected in the first half of 2025.
However, the analysts at KeyBanc expressed concerns that the current spending environment remains uncertain and that substantial commercial revenue from the collaboration with Illumina is unlikely before 2026. Consequently, with the immediate financial outlook appearing subdued, KeyBanc has revised its model to align with the company’s fiscal year 2025 guidance. The updated assessment by KeyBanc reflects a more cautious view of Standard BioTools’ near-term financial performance. For a deeper understanding of Standard BioTools’ financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro’s detailed research report, part of its coverage of over 1,400 US stocks.
In other recent news, Standard BioTools reported its fourth-quarter 2024 earnings, which showed a slight miss on both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.09, missing the forecast of -$0.07, and reported revenue of $46.7 million, slightly below the anticipated $47.02 million. The revenue declined by 9% year-over-year, reflecting challenges in instrument sales, which fell by 25%, despite a 10% increase in consumables revenue. Additionally, the gross margin decreased to 52.5% from 55.4% in the previous year.
Standard BioTools has provided revenue guidance of $165 million to $175 million for 2025, indicating cautious optimism for a modest market recovery. The company aims to achieve adjusted EBITDA breakeven by 2026 and plans to pursue 4-6 strategic mergers and acquisitions over the next two years. In the context of analyst activity, the firm’s performance and strategic positioning were noted, though no specific upgrades or downgrades were mentioned. The company continues to focus on long-term growth through product launches and strategic acquisitions, despite facing macroeconomic pressures and competitive challenges in the proteomics market.
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