Diagnostic specialist STRATEC recorded a revenue decline of eleven percent in the third quarter. This represents an accelerated downturn following an already weak quarter. Revenues stand at just under 63 million euros.

The SDAX-listed company announced in Birkenfeld that a further slight decline in sales is expected due to subdued market dynamics in the field of molecular diagnostic instrumentation solutions. This is in contrast to the previously lowered forecast, which had projected revenues at the level of the previous year or slightly above.

Despite a renewed cut in the sales forecast, STRATEC has confirmed the outlook for the margin based on earnings before interest and taxes (EBIT) of around ten to twelve percent. The shares of the diagnostic specialist quickly recovered after a weak start and were last able to record an increase of 3.2 percent to 38.20 euros in the SDAX small-cap index.

However, this does not counteract the long-term downward trend that began two years ago. Since the beginning of the year, STRATEC shares have already lost more than half of their value.

The confirmation of the forecast for the Ebit margin appears to give investors hope nonetheless. According to analysts from Kepler Cheuvreux, it has significantly improved in the third quarter compared to the first half of the year.

However, analysts at Berenberg Bank emphasized a few weeks ago that better predictability of margin recovery is necessary for a positive price development. However, a recovery seems to be kicking in, which benefits the share price of STRATEC.