Resin to Worry?

Research evidence excerpt

Resin to Worry?

mework

** = Based on consensus methodology

the coming weeks. For Q3, we'd flagged the risk of a guide below the Street during § = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

our preview note a couple of weeks back (see here), though the eventual +2-3% Quarterly EPS ($)

core came in even below our low end of consensus figure (+3%), with both 2026e 2026e 2027e 2027e

Quarter 2025 Prior Current Prior Current

Biotechnology and Dx the culprits. While today's stock move appears aggressive, we Q1 1.88 - 2.06a - 2.16

think it reflects the stop-start nature of sector optimism over recent years, with the Q2 1.80 - 1.83 - 1.97

Q3 1.89 - 2.05 - 2.18

growth reacceleration investors seek once again being pushed further out. For a Q4 2.23 - 2.47 - 2.67

sector once prized for its predictability, developments like these continue to e = Morgan Stanley Research estimates, a = Actual Company reported data

challenge a narrative that remains common in client discussions. That being said,

we're pleased to see the broader core tools bucket outperform today and believe

these issues were DHR specific, justifying the relative multiple change. Back to the

drawing board.

Items from the call that caught our attention:

1. Scrutinizing the Bioprocessing consumables impact. We thought the call's

focus on understanding the Biotechnology miss was appropriate given the

deviation from recent trend and impact to the full-year guide. Management

described the underperformance as resulting from ~$100mn worth of

chromatography resin shipments from a few key customers that were

pushed out of Q2, though without a shared molecule type or geography.

While we understand investor concern around potential competitive erosion