Mettler-Toledo beats quarterly profit estimates on strong demand for its lab instruments

Mettler-Toledo International

07/11/2024 22:34

Nov 7 (Reuters) - Medical equipment maker Mettler-Toledo
International  MTD.N  beat third-quarter profit estimates on
Thursday, helped by increased demand for its laboratory
instruments used in drug development and research.
The company also raised the lower end of its annual profit
forecast to the range of $40.35 to $40.50 per share, compared to
its previous estimate of $40.20 to $40.50 apiece.
    However, it cautioned that market conditions are uncertain
and could change quickly. 
    The Columbus, Ohio-based company reported third-quarter
revenue of $954.54 million, beating estimates of $944.74
million, as per data compiled by LSEG.
Lifesciences firms, including Mettler-Toledo, have seen sluggish
demand for their instruments used in drug development due to
decreased spending in the biotech sector and weak demand from
China, a key region for drug development. 
    "While China grew modestly this quarter, market conditions
remain challenging, particularly in the industrial sector," said
CEO Patrick Kaltenbach in a statement.  
Some analysts are hopeful that recent interest rate cuts by the
Federal Reserve could improve funding for small- and
medium-sized biotechs, as borrowing costs might ease and boost
demand.
    On an adjusted basis, the company reported a profit of
$10.21 per share, compared to estimates of $10.01 per share.
Peer Waters Corp  WAT.N  also raised its annual profit forecast
after beating Wall Street estimates for third-quarter profit and
revenue, on improved demand for its products and services used
in drug development and research.
The medical equipment maker also forecast fourth-quarter profit
to be in the range of $11.63 to $11.78, saying that it will
benefit from the prior-year shipping delays in the fourth
quarter.  
     
          

(Reporting by Sneha S K in Bengaluru; editing by Alan Barona)
((mailto:Sneha.SK@thomsonreuters.com))