DiaSorin stock rises despite mixed financial results

Published 17/03/2025, 10:18
© Reuters.

Investing.com -- Shares of DiaSorin (BIT:DIA (BME:DIDA)) edged up 1.5% following the release of its financial results, which showed revenues and EBITDA slightly below consensus but met the company’s full-year 2024 targets.

The Italian biotech company reported total revenues of €309 million for the period, approximately 2% shy of the consensus and Stifel estimates, while EBITDA reached €102 million, marginally missing expectations by 1.6% and 0.7%, respectively.

Despite the shortfall in the recent quarter, DiaSorin’s guidance for the fiscal year 2024, which forecasts 7% growth excluding COVID-related sales at constant exchange rates (CER) and an EBITDA margin of 33%, aligned with market expectations. The performance was partly impacted by the phase-out of the ARIES platform in the fourth quarter of 2023 and softer demand in the Immuno indirect/export markets, notably due to challenges in Iran.

Looking ahead, DiaSorin anticipates continued growth into fiscal year 2025, guiding for 7% CER growth with an estimated €20 million in COVID revenues, which translates to roughly 8% growth excluding COVID at CER. This projection is broadly consistent with consensus estimates, despite a stronger U.S. dollar headwind.

The company’s growth strategy is supported by high single-digit growth in Immunodiagnostics, mid-teens growth in Molecular Diagnostics, and mid-single-digit growth in long-term targets. DiaSorin also expects to achieve an EBITDA margin of 34% for FY25.

Stifel analysts commented on the results, expressing surprise at the lower Molecular Diagnostic performance in the fourth quarter during a strong respiratory season. Nevertheless, the analysts maintain confidence in DiaSorin’s market share prospects, particularly in multiplex syndromic testing, where they believe the company can capture approximately 10% share.

"The headline of a lower Molecular Diagnostic 4Q into a strong respiratory season took us by surprise, but we believe the thesis that DIA can take appropriate (~10% multiplex syndromic testing) share is we believe still fully intact. However, after the call, we feel greater confidence into the moving parts as management commented PLEX takeup was solid (guided ~100 customer funnel, ~500 installed base) in spite of classically limited validation during the respiratory season," said Stifel.

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