Nov 7 (Reuters) – Medical device maker Mettler-Toledo International beat third-quarter profit estimates on Thursday, boosted by a boost in sales of laboratory instruments used in drug development and research. demand increases. The company also raised the lower end of its annual profit forecast to $40.35 to $40.50 per share, compared with its previous forecast of $40.20 to $40.50 per share.
However, it warned that market conditions were uncertain and could change rapidly.
The Columbus, Ohio-based company reported third-quarter revenue of $954.54 million, beating estimates of $944.74 million, according to data compiled by London Stock Exchange Group (LSEG). Life sciences companies including Mettler Toledo have seen weak demand for their instruments used in drug development due to lower spending in the biotech sector and weak demand in China, a key region for drug development.
Chief Executive Patrick Kaltenbach said in a statement: “While China’s economy grew modestly during the quarter, market conditions remain challenging, especially in the industrial sector.” Some analysts hope the Fed’s recent interest rate cuts will improve the prospects for small and mid-sized biotech companies. Financing for companies as borrowing costs are likely to fall and boost demand.
On an adjusted basis, the company reported profit of $10.21 per share, compared with expectations of $10.01 per share. Peer Waters Corp also raised its annual profit forecast after third-quarter profit and revenue topped Wall Street expectations due to increased demand for products and services used in drug development and research. The medical device maker also forecast fourth-quarter profit in a range of $11.63 to $11.78, saying it would benefit from shipping delays in last year’s fourth quarter.
(Reporting by Sneha SK in Bengaluru; Editing by Alan Barona)
