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Investing.com -- Shares of Tecan Group AG (SWX:SIX:TECN) dropped 3.5% today following the company’s release of a cautious outlook for 2025.
The Swiss manufacturer of laboratory instruments provided guidance that anticipates a "low single-digit decline to low single-digit growth in sales in local currencies," which translates to an expected range of -2% to +2%, with a midpoint suggesting approximately CHF 937 million in sales. This projection falls short of the consensus estimate of CHF 964 million by 3%.
Tecan’s EBITDA guidance for 2025 further indicated a potential underperformance, with a forecasted range of 17.5-18.5%, where the midpoint of 18% implies CHF 169 million, lagging 6% behind the consensus forecast of CHF 179 million.
The second half of the year trading figures showed orders totaling CHF 431 million, driven by a local currency order growth of -11%. However, the adjusted EBITDA for this period was CHF 97 million, which is 5% above the consensus of CHF 92 million, suggesting a margin of 20.7%, slightly higher than the 20.4% anticipated by analysts.
Net income adjusted was reported at CHF 67 million, surpassing the consensus of CHF 52 million, aided by a lower-than-expected tax impact.
Despite the better-than-expected adjusted EBITDA performance in the second half, analysts have expressed concerns about the company’s future. In a statement from Morgan Stanley (NYSE:MS), analysts commented, "Overall a better 2H EBITDA performance but below-consensus outlook for 2025, with the guide implying -3%/-6% downgrades to FY25 cons forecasts.
With market visibility still low with the potential for a more prolonged recovery phase, and the growth correlation to ISRG now weaker, we think the Bear case has gained materiality and think the stock could be a relative underperformer over the near term."
Tecan’s tempered outlook reflects the challenges the company faces in a market with low visibility and a potentially extended recovery phase. The company had previously pre-released its second-half 2024 sales results on January 8, which showed a 4% increase compared to the consensus estimate of CHF 450 million.
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