Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Illumina (NASDAQ: ILMN) and its peers.

The life sciences tools and services sector supports biotech and pharmaceutical R&D and commercialization by providing lab equipment, data analytics, and clinical trial services. These companies benefit from recurring revenue and high margins on specialized products. Looking ahead, the sector is supported by tailwinds like advancements in genomics, personalized medicine, and the use of AI in drug discovery. However, the persistent challenge is dependence on the R&D budgets of large pharmaceutical companies and the volatility of smaller biotech firms. Future headwinds include uncertain research funding and pricing pressures from cost-conscious customers.

The 21 life sciences tools & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.4% below.

Luckily, life sciences tools & services stocks have performed well with share prices up 21.3% on average since the latest earnings results.

Illumina (NASDAQ: ILMN)

Pioneering the ability to read the human genome at unprecedented speed and affordability, Illumina (NASDAQ: ILMN) develops and sells advanced DNA sequencing and microarray technologies that allow researchers and clinicians to analyze genetic variations and functions.

Illumina reported revenues of $1.08 billion, flat year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.

"I am pleased to announce that the Illumina team delivered Q325 results that exceeded the high-end of our guidance range for revenue and earnings, driven by revenue acceleration in clinical, our largest market segment," said Jacob Thaysen, Chief Executive Officer.

Interestingly, the stock is up 54.1% since reporting and currently trades at $152.60.

Is now the time to buy Illumina? Access our full analysis of the earnings results here, it’s free.

Best Q3: 10x Genomics (NASDAQ: TXG)

Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.

10x Genomics reported revenues of $149 million, down 1.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an incredible quarter with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 74.4% since reporting. It currently trades at $22.68.

Is now the time to buy 10x Genomics? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Avantor (NYSE: AVTR)

With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE: AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries.

Avantor reported revenues of $1.62 billion, down 5.3% year on year, falling short of analysts’ expectations by 1.4%. It was a softer quarter as it posted a slight miss of analysts’ revenue estimates.

Avantor delivered the slowest revenue growth in the group. As expected, the stock is down 18.9% since the results and currently trades at $12.23.

Read our full analysis of Avantor’s results here.

Revvity (NYSE: RVTY)

Formerly known as PerkinElmer until its rebranding in 2023, Revvity (NYSE: RVTY) provides health science technologies and services that support the complete workflow from discovery to development and diagnosis to cure.

Revvity reported revenues of $698.9 million, up 2.2% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a satisfactory quarter as it also recorded a decent beat of analysts’ full-year EPS guidance estimates but organic revenue in line with analysts’ estimates.

Revvity scored the highest full-year guidance raise among its peers. The stock is up 17.8% since reporting and currently trades at $116.53.

Read our full, actionable report on Revvity here, it’s free.

Waters Corporation (NYSE: WAT)

Founded in 1958 and pioneering innovations in laboratory analysis for over six decades, Waters (NYSE: WAT) develops and manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis used in scientific research and quality testing.

Waters Corporation reported revenues of $799.9 million, up 8% year on year. This number surpassed analysts’ expectations by 2.4%. More broadly, it was a satisfactory quarter as it also logged a solid beat of analysts’ organic revenue estimates but a miss of analysts’ EPS guidance for next quarter estimates.

The stock is up 14.8% since reporting and currently trades at $396.71.

Read our full, actionable report on Waters Corporation here, it’s free.

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