Harvard Bioscience 2025 Q1 Earnings Misses Targets with Net Income Plummeting 972.4%
Tuesday, May 13, 2025 8:28 am ET
4min read Harvard Bioscience (HBIO) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company faced a challenging first quarter with revenue coming in at $21.77 million, slightly above the consensus estimate of $20 million. However, the earnings results fell short of expectations, with a significant net income loss. Looking forward, the company has adjusted its guidance for the second quarter, expecting revenues between $18 million and $20 million. Investors should remain cautious as Harvard Bioscience navigates current market challenges and explores opportunities for growth through new technologies.
Revenue
Harvard Bioscience's total revenue for the first quarter of 2025 declined by 11.2% compared to the same period in 2024. The Instruments, equipment, software, and accessories segment generated $19.86 million, while revenue from service, maintenance, and warranty contracts totaled $1.91 million. Overall, the company reported a total of $21.77 million in revenue, reflecting a decrease from the previous year's $24.51 million.
Earnings/Net Income
Harvard Bioscience's earnings for Q1 2025 revealed deepening losses, with earnings per share dropping from a loss of $0.11 in 2024 Q1 to $1.14 in 2025 Q1. The company’s net loss widened significantly, reaching $-50.34 million, a 972.4% increase compared to the $-4.69 million loss in 2024 Q1. These results indicate a troubling financial performance for the quarter.
Price Action
The stock price of Harvard Bioscience experienced a 4.84% drop during the latest trading day, a 6.73% climb during the most recent full trading week, and a 23.29% decline month-to-date.
Post-Earnings Price Action Review
The strategy of buying HBIO stock when revenue beats expectations and holding for 30 days has shown mixed results. While the latest report period saw a slight revenue beat, closing at $0.32, the stock witnessed a decline of -76.320% over the last 3 months and -89.970% over the last 12 months. The market reacted negatively despite the revenue beat, likely due to concerns over earnings, as the EPS was -$0.010, in line with estimates. The stock's performance indicates a high risk of further declines, given the significant price drop over the past year. Although the strategy could work if revenue beats are viewed positively, current market sentiment and financial performance suggest caution. Investors should weigh the potential for long-term growth against the risks of further declines in the short term.
CEO Commentary
Jim Green, Chairman, President & CEO, highlighted the strong inbound interest for new product lines despite a challenging first quarter. He noted the impact of NIH funding uncertainties and recent tariff announcements affecting the China market. Green emphasized the company's commitment to expanding the adoption of innovative products while managing costs effectively, stating optimism about improvements in operational cash flow and potential positive developments regarding U.S.-China relations.
Guidance
The company expects second-quarter revenue to be in the range of $18 million to $20 million, with gross margin anticipated between 55% and 57%. Jim Green mentioned that cost actions already implemented are projected to reduce operating expenses by an additional $1 million per quarter starting in Q2 2025. Leadership remains focused on navigating market challenges while capitalizing on growth opportunities presented by new technologies and applications.
Additional News
In recent non-earnings news, Harvard Bioscience has been actively working on refinancing its debt facility, drawing interest from multiple providers. The company has introduced new products, including the SoHo family of implanted telemetry devices and the VivaMARS system, expected to drive future growth. Additionally, Harvard Bioscience is seeing strong interest in its MeshMEA organoid platform, with academic and industrial customers showing enthusiasm, particularly due to new policy changes encouraging alternative methods in drug development. These developments reflect the company's focus on innovation and strategic financial management.
Revenue
Harvard Bioscience's total revenue for the first quarter of 2025 declined by 11.2% compared to the same period in 2024. The Instruments, equipment, software, and accessories segment generated $19.86 million, while revenue from service, maintenance, and warranty contracts totaled $1.91 million. Overall, the company reported a total of $21.77 million in revenue, reflecting a decrease from the previous year's $24.51 million.
Earnings/Net Income
Harvard Bioscience's earnings for Q1 2025 revealed deepening losses, with earnings per share dropping from a loss of $0.11 in 2024 Q1 to $1.14 in 2025 Q1. The company’s net loss widened significantly, reaching $-50.34 million, a 972.4% increase compared to the $-4.69 million loss in 2024 Q1. These results indicate a troubling financial performance for the quarter.
Price Action
The stock price of Harvard Bioscience experienced a 4.84% drop during the latest trading day, a 6.73% climb during the most recent full trading week, and a 23.29% decline month-to-date.
Post-Earnings Price Action Review
The strategy of buying HBIO stock when revenue beats expectations and holding for 30 days has shown mixed results. While the latest report period saw a slight revenue beat, closing at $0.32, the stock witnessed a decline of -76.320% over the last 3 months and -89.970% over the last 12 months. The market reacted negatively despite the revenue beat, likely due to concerns over earnings, as the EPS was -$0.010, in line with estimates. The stock's performance indicates a high risk of further declines, given the significant price drop over the past year. Although the strategy could work if revenue beats are viewed positively, current market sentiment and financial performance suggest caution. Investors should weigh the potential for long-term growth against the risks of further declines in the short term.
CEO Commentary
Jim Green, Chairman, President & CEO, highlighted the strong inbound interest for new product lines despite a challenging first quarter. He noted the impact of NIH funding uncertainties and recent tariff announcements affecting the China market. Green emphasized the company's commitment to expanding the adoption of innovative products while managing costs effectively, stating optimism about improvements in operational cash flow and potential positive developments regarding U.S.-China relations.
Guidance
The company expects second-quarter revenue to be in the range of $18 million to $20 million, with gross margin anticipated between 55% and 57%. Jim Green mentioned that cost actions already implemented are projected to reduce operating expenses by an additional $1 million per quarter starting in Q2 2025. Leadership remains focused on navigating market challenges while capitalizing on growth opportunities presented by new technologies and applications.
Additional News
In recent non-earnings news, Harvard Bioscience has been actively working on refinancing its debt facility, drawing interest from multiple providers. The company has introduced new products, including the SoHo family of implanted telemetry devices and the VivaMARS system, expected to drive future growth. Additionally, Harvard Bioscience is seeing strong interest in its MeshMEA organoid platform, with academic and industrial customers showing enthusiasm, particularly due to new policy changes encouraging alternative methods in drug development. These developments reflect the company's focus on innovation and strategic financial management.
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