Bio-Rad Laboratories, Inc. (BIO - Free Report) , a worldwide provider of life science research and clinical diagnostic products, reported adjusted third quarter 2013 earnings of 56 cents, lagging the Zacks Consensus Estimate of earnings of 66 cents.
The company reported loss of 25 cents in the reported quarter, significantly short of the year-ago earnings of $1.49 per share.
Following the announcement on Nov 7, stock price of Bio-Rad declined 0.40% to $121.14 per share on Nov 11.
Revenues in Detail
Revenues were $505.1 million in the reported quarter, improving 1.2% on a year-over-year basis (up 1.8% at Constant Exchange Rate or CER). Revenues included $5.5 million of sales from the company's acquisition of AbD Serotec in Jan 2013.
However, the figure missed the Zacks Consensus Estimate of $521 million.
Segments in Detail
Net revenue from the Life Science segment were $162.9 million, down 2.5% year over year (down1.2% at CER). Sales of antibodies and reagents from the acquisition of AbD Serotec had a positive impact on the segment. However, sluggish growth persisted in the research spending environment.
In the Clinical Diagnostics segment, revenues increased 3.2% to $338.8 million. Growth in this segment was mainly driven by sales across all product lines like quality controls, diabetes and autoimmune products.
Robust performance across the company’s product range, including diabetes propelled segmental growth. Strong sales in China and Latin American markets were partially offset by weakness in the Western Europe.
Gross profit increased 3.8% year over year to $284.2 million, leading to a 140 basis points (bps) expansion in gross margin. The upside reflects a favorable product mix and increased manufacturing utilization, dragging down the overall revenue from this segment.
On the other hand, operating expenses rose 22.7% year over year to $255.6 million. The escalation was driven by higher research and development (up 10.7% to $52.9 million) and selling, general and administrative expenses (up 26% to $202.2 million).
The company ended the quarter with cash, cash equivalents and short term investments of $561.8 million as on Sep 30, 2013, as compared to $921 million as on Dec 31, 2012.
Following the performance in the third quarter, the company reiterated its guidance for 2013. It expects a growth of 2% in the base business and 3.1%, including the Serotec acquisition. Considering the challenges in the European market and constraints in the funding environment, revenue growth in 2013 is likely to remain in the range of 2% to 3%.
Currently the stock carries a Zacks Rank # 3 (Hold). Other stocks that are worth a look include INSYS Therapeutics, Inc. (INSY - Free Report) , Hill-Rom Holdings, Inc. (HRC - Free Report) and NuVasive, Inc. (NUVA - Free Report) each sporting a Zacks Rank #1 (Strong Buy).