Harvard Bioscience Reports Second Quarter 2024 Financial Results

Harvard Bioscience Reports Second Quarter 2024 Financial Results

Overview Harvard Bioscience, Inc. (NASDAQ:HBIO) has released its financial results for the second quarter ended June 30, 2024.

Key Financial Metrics | Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimate | Variance from Consensus | |:---------------------------------------- |:------------- |:------------- |:----------- |:-------------------|:-----------------------| | Revenue | $23.1M | $28.8M | -19.8% | $26.4M | -12.5% | | Earnings Per Share (EPS) | $(0.07) | $(0.02) | -250% | $0.05 | N/A | | Gross Margin | 57.2% | 58.0% | -0.8pp | N/A | N/A | | Net Loss | $(2.9)M | $(1.0)M | -190% | N/A | N/A | | Adjusted EBITDA | $1.3M | $3.9M | -67% | N/A | N/A |

Interpretation : Harvard Bioscience reported a significant decline in revenue and net income compared to the same period last year, largely attributable to a challenging market environment. The reduced revenue and gross margins highlight the lower absorption of fixed manufacturing costs, indicating operational challenges. The company’s results fell short of Wall Street's expectations for both revenue and earnings.

Revenue Performance by Segment | Segment | Q2 2024 Revenue | Previous Guidance | Actual vs Guidance | |:---------------------------------------- |:-----------------|:-------------------|:-------------------| | Total Revenue | $23.1M | N/A | N/A |

Interpretation : The revenue performance across the major segments was weaker than expected due to market challenges. The company did not provide segmented details in the report.

Comments from Company Officers Jim Green, Chairman and CEO, stated, "Second quarter revenues reflect a more challenging than expected market environment. With the uncertainty of the timing for market recovery, we stayed focused on managing costs, and the actions we implemented during Q2 are expected to drive annualized savings of approximately $4 million while we continue our work on new product development and growth initiatives." He added, "We believe the market recovery is likely delayed to later in the second half; however, we remain excited about the long-term growth prospects from our innovative new products."

Forward Guidance Harvard Bioscience has revised its full-year 2024 revenue outlook to approximately $97 million to $102 million. The company expects the full-year gross margin to be approximately 59% to 60% and adjusted EBITDA margin to be in the high single digits.

Stock Price Movement Following the earnings release, the stock price experienced a 0.54% increase.

Summary Harvard Bioscience faced a challenging second quarter with a notable decline in revenue and earnings compared to the same period last year, primarily due to a tougher market environment and lower absorption of manufacturing costs. Despite this, the company remains focused on cost management and new product development, expressing optimism for long-term growth. The revised revenue outlook for the year further underscores the expected prolonged market recovery.