NASDAQ$MLAB

Mesa Laboratories Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Mesa Labs' financial performance decreased slightly due to currency and COVID headwinds, but core organic revenue showed growth.

Mesa Labs reported a slight decrease in revenues for Q3 2023, but experienced growth in operating income and non-GAAP adjusted operating income. The company faced headwinds from currency exchange rates and COVID-19 impacts, but saw core organic revenue growth of 4.6%.

  • Revenues decreased by 1%, but non-GAAP core organic revenues grew by 4.6%.
  • Operating income increased significantly by 235%.
  • Non-GAAP adjusted operating income excluding unusual items decreased by 7%.
  • Clinical Genomics division was impacted by the closure of Sema4's expanded carrier screening business.

Headline financials

Total Revenue

$54.3M

Previous: $54.7M-0.7%
EPS (adj)

$2.35

Previous: $1.36+72.8%
Core Organic Revenue Growth

4.6%

No prior period
Capital Expenditures

-$3.52M

Previous: -$3.65M+3.6%
Free Cash Flow

$11.9M

Previous: $26.3M-54.5%
Net Income

$451K

Previous: -$2.06M+121.9%
Operating Income

$3.4M

Previous: -$2.51M+235.4%
Gross Profit

$32.8M

Previous: $28.6M+14.5%
Cash & Equivalents

$26.1M

Previous: $51.7M-49.5%
Total Assets

$663M

Previous: $722M-8.1%
Stock-Based Comp

$2.06M

Previous: $3.7M-44.5%

Revenue & EPS history

Mesa Labs · Revenue · Quarterly

$54.3M

Q3 2023-0.7%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Mesa Labs · $54.3M total across 4 segments · Q3 2023

  • Sterilization and Disinfection Control
    $16.3M+14.5%
  • Clinical Genomics
    $15.6M-5.5%
  • Biopharmaceutical Development
    $11.6M-7.4%
  • Calibration Solutions
    $10.8M-6.2%

Forward guidance

Mesa Labs enters the fourth quarter with clear short-term priorities for each division, expecting long-term growth opportunities in the regulated phases of the biopharmaceutical life cycle and the clinical genomics market.

Tailwinds

  • Clinical Genomics will be aided by the launch of a hereditary deafness Class 3 IVD panel in China by Guanzhou Darui.
  • The panel received Chinese National Medical Products Administration (“NMPA”) approval in early January.
  • This is the first Class 3 IVD panel based on our MassArray platform to receive such approval.
  • Many more panels are in the pipeline.
  • Raw materials availability improvements should enable sequential top line growth in 4Q23.

Headwinds

  • New systems orders for both the Clinical Genomics and Biopharmaceutical Development divisions were below expectations for the quarter.
  • Improving consistent sale execution in those divisions remains a short-term priority for the company.
  • Economic uncertainty in calendar year 2023 requires balancing margins and long-term growth investments.
  • The primary gap to our long-term target is the approximate 3.5% headwind from Sema4.
  • The quarter was strongly impacted by the previously announced closure of Sema4’s expanded carrier screening, an approximate $8,200 annual headwind that began fully impacting the business in 3Q23.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.1%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.1%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+26.6%

Q2 2023

Best reaction

-24.9%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+8.7%+15.9%+8.8%
Q2 2026+2.1%+6.7%+3.7%
Q1 2026-24.9%-16.0%-15.9%
Q4 2025-9.3%-13.5%-12.8%
Q3 2025+2.5%+10.3%+3.2%
Q2 2025-11.4%-16.2%-7.6%
Q1 2025+5.8%+11.8%+13.4%
Q4 2024+13.3%+5.5%-3.4%
Q3 2024+2.0%-0.2%+18.9%
Q2 2024+0.1%-8.8%+2.0%
Q1 2024+8.0%+10.3%+11.4%
Q4 2023-2.2%-7.7%-11.7%
Q3 2023-7.4%-8.6%-13.5%
Q2 2023+26.6%+31.2%+39.1%
Q1 2023-5.5%-10.7%-23.5%
Q4 2022-3.7%-2.7%-6.1%
Q3 2022-3.9%-2.0%-5.8%
Q2 2022+4.0%+1.4%-0.1%
Q1 2022+0.4%-1.4%-3.8%
Q4 2021+4.7%+6.4%+9.6%
Q3 2021+0.9%-0.4%-5.2%
Q2 2021-0.4%+2.7%+2.1%
Q1 2021+2.0%-1.5%-1.4%
Q4 2020-5.7%-6.5%-18.6%
Q3 2020-7.2%-2.4%-13.9%
Q2 2020-0.2%-4.7%+3.3%
Q1 2020+6.6%+7.0%-7.3%
Q4 2019-21.1%-19.3%-2.3%
Q3 2019+0.6%+3.4%+2.2%
Q2 2019+0.9%+3.0%+20.4%
Q1 2019-2.7%-0.3%+3.5%
Q4 2018+16.3%+15.4%+31.3%
Q3 2018-5.1%-14.2%-8.0%
Q2 2018-17.2%-19.7%-19.7%
Q1 2018+5.2%+1.6%-2.5%
Q4 2017-6.5%-13.3%-12.3%
Q3 2017+6.4%+1.4%+5.2%
Q2 2017-1.3%-0.8%-1.1%
Q1 2017-4.3%-10.4%-10.5%
Q4 2016+12.7%+26.5%+23.1%
Q3 2016-4.8%
Q2 2016+1.9%
Q1 2016+13.3%
Q4 2015+2.1%
Q3 2015+0.8%
Q2 2015+10.4%
Q1 2015-2.0%
Q4 2014-4.0%
Q3 2013-0.2%
Q3 2014-0.2%
Q2 2014-0.1%
Q1 2014-3.5%
Q4 2013-0.2%
Q2 2013-1.8%
Q1 2013-0.8%
Q4 2012+2.5%
Q3 2011+1.3%
Q3 2012+1.3%
Q2 2011+1.5%
Q2 2012+1.5%
Q4 2011+0.0%
Q1 2011+0.0%
Q1 2012+0.0%
Q4 2010+0.1%

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