Mettler-Toledo beats quarterly profit estimates on strong demand for its lab instruments
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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
