Sartorius Earnings: Weak Demand Period May Be Short-Lived, With Sales Growth Expected To Return Soon

Second-quarter results for wide-moat companies Sartorius AG and its bioprocessing subsidiary, Sartorius Stedim Biotech, came in about as expected after a preliminary announcement last month. We already adjusted our near-term forecasts after management lowered full-year guidance in June, as the softening demand after the pandemic-era buildup weighed on sales for longer than management initially anticipated. However, on the call, management highlighted visibility into an expected rebound in orders later in 2023. Since we already saw this weak demand as temporary after the June update, we plan to maintain our fair value estimates. The potential for demand to rebound later this year sent share prices up for both names, which now appear to be trading in roughly fair territory.