What happened
Shares of Harvard Bioscience (HBIO 3.24%), a medical equipment and technology manufacturer and retailer, were up by 16.4% for the week as of Thursday's close, according to data provided by S&P Global Market Intelligence. The stock closed at $4.89 last Friday, then hit a 52-week high of $5.80 on Wednesday after the company released its first-quarter earnings report.
Harvard Bioscience sells laboratory equipment to clinical research organizations, pharmaceutical companies, and academic labs -- everything from amino acid analyzers to programmable syringe pumps. The stock is up by more than 105% so far this year.
NASDAQ: HBIO
Key Data Points
So what
The healthcare equipment company's revenue rose by 4% year over year to $30 million, and it delivered earnings of $0.01 per share, compared to a loss of $0.17 per share in the prior-year period. Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin was 16%, compared to 9% in the first quarter of 2022.
The company has two segments: cellular and molecular, and pre-clinical. Sales were flat year over year in the cellular and molecular segment, but pre-clinical sales were up by 12%. CEO Jim Green credited an improved product portfolio for the increased revenue, specifically pointing to its latest BTX electroporation system (used to aid in CRISPR gene-editing applications) and the company's continuous glucose implant, both of which it launched in 2022. The company also paid down $2.8 million of debt, reducing its net debt to $41 million, compared to $44.6 million at the end of last year's first quarter.
Now what
The key for the company will be to continue growing its sales of pre-clinical products, which have higher profit margins than its cellular and molecular offerings. Harvard Bioscience is focusing more on products with recurring revenue streams and higher application service provider needs. Investors will want to see the company become more consistently profitable, which it was not last year. However, it now has improved for two quarters in a row.
