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Investing.com -- Shares of Danaher Corporation (NYSE:DHR) climbed 2%, while Repligen Corporation (NASDAQ:RGEN) saw a 3% increase, Thermo Fisher Scientific Inc. (NYSE:TMO) rose 2%, and Agilent Technologies, Inc. (NYSE:A) gained 1.3% amid a positive market response to German life sciences company Sartorius AG (ETR:SATG)'s robust financial results. The uptick in these US-listed peers of Sartorius comes after the company reported earnings that surpassed expectations.
Sartorius's strong performance, highlighted by a significant 17% jump in its shares, was driven by better-than-expected adjusted EBITDA for the full year and a forecast for a moderate increase in sales revenue by 2025. This positive outcome has rippled through the industry, with Danaher and Thermo Fisher anticipating their own earnings reports later this week.
Analysts have weighed in on Sartorius's results, attributing the impressive fourth quarter to high demand for consumables, especially in advanced therapies. Barclays (LON:BARC) analyst Charles Pitman-King mentioned, "The strong 4Q was mainly driven by strong consumables demand, particularly for advanced therapies." He also noted that investors would likely see these "extremely positive" results as a "clear sign of returning demand."
JPMorgan analyst Richard Vosser added that both sales and underlying EBITDA not only beat consensus but also exceeded JPMorgan’s forecasts. He highlighted the strong order intake for the bioprocess solutions business, which surpassed JPMorgan’s estimate by 22%.
RBC's analyst Charles Weston pointed out that the bioprocessing division exceeded consensus expectations for both revenue and margin. He emphasized the "very strong" order intake and improvement in the book-to-bill ratio.
Sartorius's 2024 year-end results showcased adjusted EBITDA of €945.3 million, against an estimate of €933.6 million, with a margin of 28%, slightly above the estimated 27.7%. Their orders and sales both reached €3.38 billion, with sales slightly outperforming the €3.36 billion estimate. However, adjusted net income was reported at €279.9 million, marginally below the estimated €281.2 million.
Looking ahead, Sartorius expects the demand recovery and growth in the life science market to continue into fiscal 2025, albeit at a rate below its long-term average. The company aims to grow profitably above market level, with a moderate increase in sales revenue. They are optimistic that underlying EBITDA will increase disproportionately compared to sales revenue, supported by positive product mix effects and the efficiency program implemented in the previous year. Sartorius will provide a quantitative forecast after the first quarter of 2025.
Investors in Danaher, Repligen, Thermo Fisher, and Agilent are responding to these developments, anticipating how the trends indicated by Sartorius may influence the upcoming earnings reports and the broader life sciences sector.
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