Sotera Health Company (SHC): Buy, Sell, or Hold Post Q3 Earnings?

As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the research tools & consumables industry, including Bruker and its peers.

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

Thankfully, share prices of the companies have been resilient as they are up 5.3% on average since the latest earnings results.

Bruker

With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.

Bruker reported revenues of $860.5 million, flat year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ full-year EPS guidance estimates.

Bruker delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 29% since reporting and currently trades at $50.23.

Best Q3: Sotera Health Company

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ organic revenue estimates.

The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $18.40.

Weakest Q3: Avantor

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 21.7% since the results and currently trades at $11.81.

Read our full analysis of Avantor’s results here.

Bio-Techne

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Bio-Techne reported revenues of $286.6 million, down 1% year on year. This result came in 1.7% below analysts' expectations. Overall, it was a softer quarter as it also produced a miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Bio-Techne had the weakest performance against analyst estimates among its peers. The stock is up 2.1% since reporting and currently trades at $62.36.

Read our full, actionable report on Bio-Techne here, it’s free for active Edge members.

Mettler-Toledo

With roots dating back to the precision balance innovations of Swiss engineer Erhard Mettler, Mettler-Toledo manufactures precision weighing instruments, analytical equipment, and product inspection systems used in laboratories, industrial settings, and food retail.

Mettler-Toledo reported revenues of $1.03 billion, up 7.9% year on year. This print surpassed analysts’ expectations by 3.2%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

Mettler-Toledo scored the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $1,447.

Read our full, actionable report on Mettler-Toledo here, it’s free for active Edge members.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bio-Techne and the rest of the research tools & consumables stocks fared in Q3.

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Bio-Techne

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Bio-Techne reported revenues of $286.6 million, down 1% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a softer quarter for the company with a miss of analysts’ revenue estimates.

"The Bio-Techne team once again executed with focus and agility in a dynamic operating environment," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne.

Bio-Techne delivered the weakest performance against analyst estimates of the whole group. Unsurprisingly, the stock is down 4.1% since reporting and currently trades at $58.57.

Read our full report on Bio-Techne here, it’s free for active Edge members.

Best Q3: Sotera Health Company

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates.

The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $17.75.

Weakest Q3: Avantor

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 23.9% since the results and currently trades at $11.47.

Read our full analysis of Avantor’s results here.

Agilent

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.86 billion, up 9.4% year on year. This number beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

Agilent scored the fastest revenue growth among its peers. The stock is down 10.6% since reporting and currently trades at $137.56.

Read our full, actionable report on Agilent here, it’s free for active Edge members.

Thermo Fisher

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Thermo Fisher reported revenues of $11.12 billion, up 4.9% year on year. This result surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also recorded a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 4.5% since reporting and currently trades at $583.14.

Read our full, actionable report on Thermo Fisher here, it’s free for active Edge members.

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at research tools & consumables stocks, starting with Sotera Health Company .

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

In light of this news, share prices of the companies have held steady as they are up 1.3% on average since the latest earnings results.

Best Q3: Sotera Health Company

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year. This print exceeded analysts’ expectations by 2.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates.

“Today, we reported strong top-line revenue growth and double-digit Adjusted EBITDA growth, with approximately 150 basis points of margin expansion,” said Chairman and Chief Executive Officer Michael B. Petras, Jr.

Interestingly, the stock is up 4.8% since reporting and currently trades at $17.41.

Agilent

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.86 billion, up 9.4% year on year, outperforming analysts’ expectations by 1.5%. The business had a strong quarter with a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

Agilent achieved the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.1% since reporting. It currently trades at $138.39.

Weakest Q3: Avantor

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 25.3% since the results and currently trades at $11.27.

Read our full analysis of Avantor’s results here.

Danaher

Born from a real estate investment trust that transformed into a manufacturing powerhouse, Danaher is a global science and technology company that provides specialized equipment, software, and services for biotechnology, life sciences, and diagnostics.

Danaher reported revenues of $6.05 billion, up 4.4% year on year. This result beat analysts’ expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

The stock is up 11.3% since reporting and currently trades at $230.33.

Read our full, actionable report on Danaher here, it’s free for active Edge members.

Thermo Fisher

With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide.

Thermo Fisher reported revenues of $11.12 billion, up 4.9% year on year. This number surpassed analysts’ expectations by 1.9%. It was a strong quarter as it also put up a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 3.6% since reporting and currently trades at $578.20.

Read our full, actionable report on Thermo Fisher here, it’s free for active Edge members.

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Avantor and its peers.

The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives.

The 10 research tools & consumables stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.1% while next quarter’s revenue guidance was 1.3% below.

While some research tools & consumables stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.

Weakest Q3: Avantor

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year. This print fell short of analysts’ expectations by 1.4%. Overall, it was a softer quarter for the company with a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

"Avantor's diverse portfolio, strong production capabilities, and long-standing customer relationships provide a strong foundation for sustained value creation," said Emmanuel Ligner, President and Chief Executive Officer.

Avantor delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 26.6% since reporting and currently trades at $11.08.

Read our full report on Avantor here, it’s free for active Edge members.

Best Q3: Sotera Health Company

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ organic revenue estimates.

The market seems content with the results as the stock is up 3% since reporting. It currently trades at $17.10.

Bio-Techne

With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development.

Bio-Techne reported revenues of $286.6 million, down 1% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a miss of analysts’ revenue estimates.

Bio-Techne delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 6.5% since the results and currently trades at $57.11.

Read our full analysis of Bio-Techne’s results here.

Bruker

With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels.

Bruker reported revenues of $860.5 million, flat year on year. This print surpassed analysts’ expectations by 1.8%. Zooming out, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ full-year EPS guidance estimates.

Bruker had the weakest full-year guidance update among its peers. The stock is up 14.9% since reporting and currently trades at $44.73.

Read our full, actionable report on Bruker here, it’s free for active Edge members.

Agilent

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.86 billion, up 9.4% year on year. This number topped analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

Agilent scored the fastest revenue growth among its peers. The stock is down 11.4% since reporting and currently trades at $136.35.

Read our full, actionable report on Agilent here, it’s free for active Edge members.

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how life sciences tools & services stocks fared in Q3, starting with 10x Genomics .

The life sciences tools and services sector supports biotech and pharmaceutical R&D and commercialization by providing lab equipment, data analytics, and clinical trial services. These companies benefit from recurring revenue and high margins on specialized products. Looking ahead, the sector is supported by tailwinds like advancements in genomics, personalized medicine, and the use of AI in drug discovery. However, the persistent challenge is dependence on the R&D budgets of large pharmaceutical companies and the volatility of smaller biotech firms. Future headwinds include uncertain research funding and pricing pressures from cost-conscious customers.

The 21 life sciences tools & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1% below.

Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.

Best Q3: 10x Genomics

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

10x Genomics reported revenues of $149 million, down 1.7% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

"Our team delivered a solid third quarter, and we continue to see notable enthusiasm for our single cell and spatial products," said Serge Saxonov, Co-founder and CEO of 10x Genomics.

Interestingly, the stock is up 37% since reporting and currently trades at $17.81.

Is now the time to buy 10x Genomics? Access our full analysis of the earnings results here, it’s free for active Edge members.

Sotera Health Company

With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.

Sotera Health Company reported revenues of $311.3 million, up 9.1% year on year, outperforming analysts’ expectations by 2.6%. The business had an exceptional quarter with a solid beat of analysts’ full-year EPS guidance and organic revenue estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $16.75.

Is now the time to buy Sotera Health Company? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Avantor

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 26.9% since the results and currently trades at $11.02.

Read our full analysis of Avantor’s results here.

Charles River Laboratories

Named after the Massachusetts river where it was founded in 1947, Charles River Laboratories provides non-clinical drug development services, research models, and manufacturing support to pharmaceutical and biotechnology companies.

Charles River Laboratories reported revenues of $1.00 billion, flat year on year. This number surpassed analysts’ expectations by 1.1%. It was a satisfactory quarter as it also produced a narrow beat of analysts’ organic revenue estimates.

The stock is up 3.3% since reporting and currently trades at $183.71.

Read our full, actionable report on Charles River Laboratories here, it’s free for active Edge members.

Agilent

Originally spun off from Hewlett-Packard in 1999 as its measurement and analytical division, Agilent Technologies provides analytical instruments, software, services, and consumables for laboratory workflows in life sciences, diagnostics, and applied chemical markets.

Agilent reported revenues of $1.86 billion, up 9.4% year on year. This print beat analysts’ expectations by 1.5%. Overall, it was a strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and a narrow beat of analysts’ revenue estimates.

The stock is down 5.9% since reporting and currently trades at $144.76.

Read our full, actionable report on Agilent here, it’s free for active Edge members.