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Mettler-Toledo forecast dull third-quarter profit on weak China demand

Lifesciences firms including lab equipment maker Mettler-Toledo have seen sluggish demand for their instruments used in drug development as cash-strapped biotech clients try to navigate a funding crunch amid high interest rates.

Slowing growth in China has further crimped demand for Mettler. In its first-quarter earnings, the company had flagged that it continued to see softness in China.

“As expected, market conditions in China remained weak,” said CEO Patrick Kaltenbach.

The firm expects third-quarter adjusted profit to be in the range of $9.90 to $10.05 per share, below estimates of $10.36 per share.

Its quarterly sales fell 4% to $946.8 million, above analysts’ average estimate of $929.1 million.

The Columbus, Ohio-based firm reported adjusted profit for the quarter of $9.65 per share, versus analysts’ expectations of $9.03 per share.

Even though the company raised its 2024 adjusted profit to be in the range of $40.20 to $40.50 per share, from its previous range of $39.90 to $40.40 apiece, its midpoint came 5 cents below estimates.

Analysts, on average, expect a profit of $40.40 per share, for the year, according to LSEG data.

Peer Waters Corp (NYSE:WAT) lowered its annual profit forecast last week, as it anticipates reduced demand for its products and services used in drug development and research.


Source: Economy - investing.com

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