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Bio-Rad's (BIO) Product Launches Aid Growth, Global Arm Strong
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Bio-Rad Laboratories, Inc. (BIO - Free Report) has been witnessing strength in international markets. Further, strong key product lines across major geographic regions buoy optimism. The stock currently carries a Zacks Rank #2 (Buy).
Over the past year, Bio-Rad has outperformed its industry. The stock has gained 5.1% against the industry’s 12.7% fall.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings but a revenue miss. The company continued to experience solid recovery in most of its key global markets, as well as an uptick in demand for COVID-related products, driven by the spread of the new Omicron variant. Further, strength in its key product lines across major geographic regions buoys optimism. The Diagnostics business registered growth across all its product lines, driven by the recovery of routine testing, which is now approaching pre-COVID levels.
Excluding COVID-related sales and the $32-million settlement for back royalties, Bio-Rad witnessed underlying Life Science business’s year-over-year currency-neutral core revenue growth of 7.9% in the fourth quarter of 2021. The year-over-year growth was driven by Droplet Digital PCR as well as the qPCR business, which is experiencing nice uptake from Bio-Rad’s new-generation CFX Opus platform.
Further, Bio-Rad witnessed constant-currency sales growth of 12.6% and reported growth of 12.8% at its Clinical diagnostics segment in the reported quarter. A recovery in routine testing drove the year-over-year growth. Excluding COVID-related sales, the Clinical Diagnostic business’ year-over-year currency-neutral core revenue growth was 12.1%. The company also started to see a recovery in demand for non-COVID businesses.
In recent times, Bio-Rad has been deriving more than 60% of its net sales from international markets. Europe happens to be the largest international market for the company. On a geographic basis, the Diagnostics group’s currency-neutral year-over-year sales grew in mid-single digits in the Americas and saw double-digit growth in the Europe and Asia regions. In the Life Science business, all regions witnessed growth compared with the year-ago quarter. The company also noted continued gradual capacity improvement at both academic and diagnostic labs.
On the flip side, during the fourth quarter, Bio-Rad’s gross profit fell 12.9%. Per the company, the adjusted gross margin was 55.4%, down 280 basis points (bps). Operating expenses in the reported quarter rose 3.2% year over year. The year-over-year rise in operating costs is building pressure on the bottom line. Further, the operating margin in the fourth quarter contracted 759 bps to 14.6%. Moreover, the company’s Life Science business declined 23.4% on a currency-neutral basis attributed to lower qPCR product revenues due to a decline in COVID-related demand.
Further, foreign-exchange woes, stiff competition and pandemic-led macroeconomic troubles persist.
Key Picks
A few better-ranked stocks in the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and AmerisourceBergen Corporation .
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has outperformed the industry over the past year. HSIC has gained 41.9% compared with the industry’s 13.7% rise over the past year.
Owens & Minor has a long-term earnings growth rate of 23.6%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 32.4%, on average. It carries a Zacks Rank #2 (Buy).
Owens & Minor has outperformed the industry over the past year. OMI has gained 41% compared with the 11.8% industry decline in the said period.
AmerisourceBergen has a long-term earnings growth rate of 8.2%. In the trailing four quarters, AmerisourceBergen’s earnings surpassed estimates in three quarters and missed in one, delivering an average surprise of 2.3%. The stock currently carries a Zacks Rank #2.
AmerisourceBergen has outperformed its industry in the past year, gaining 41.2% compared with the industry’s 13.7% rise.
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Bio-Rad's (BIO) Product Launches Aid Growth, Global Arm Strong
Bio-Rad Laboratories, Inc. (BIO - Free Report) has been witnessing strength in international markets. Further, strong key product lines across major geographic regions buoy optimism. The stock currently carries a Zacks Rank #2 (Buy).
Over the past year, Bio-Rad has outperformed its industry. The stock has gained 5.1% against the industry’s 12.7% fall.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings but a revenue miss. The company continued to experience solid recovery in most of its key global markets, as well as an uptick in demand for COVID-related products, driven by the spread of the new Omicron variant. Further, strength in its key product lines across major geographic regions buoys optimism. The Diagnostics business registered growth across all its product lines, driven by the recovery of routine testing, which is now approaching pre-COVID levels.
Excluding COVID-related sales and the $32-million settlement for back royalties, Bio-Rad witnessed underlying Life Science business’s year-over-year currency-neutral core revenue growth of 7.9% in the fourth quarter of 2021. The year-over-year growth was driven by Droplet Digital PCR as well as the qPCR business, which is experiencing nice uptake from Bio-Rad’s new-generation CFX Opus platform.
Further, Bio-Rad witnessed constant-currency sales growth of 12.6% and reported growth of 12.8% at its Clinical diagnostics segment in the reported quarter. A recovery in routine testing drove the year-over-year growth. Excluding COVID-related sales, the Clinical Diagnostic business’ year-over-year currency-neutral core revenue growth was 12.1%. The company also started to see a recovery in demand for non-COVID businesses.
BioRad Laboratories, Inc. Price
BioRad Laboratories, Inc. price | BioRad Laboratories, Inc. Quote
In recent times, Bio-Rad has been deriving more than 60% of its net sales from international markets. Europe happens to be the largest international market for the company. On a geographic basis, the Diagnostics group’s currency-neutral year-over-year sales grew in mid-single digits in the Americas and saw double-digit growth in the Europe and Asia regions. In the Life Science business, all regions witnessed growth compared with the year-ago quarter. The company also noted continued gradual capacity improvement at both academic and diagnostic labs.
On the flip side, during the fourth quarter, Bio-Rad’s gross profit fell 12.9%. Per the company, the adjusted gross margin was 55.4%, down 280 basis points (bps). Operating expenses in the reported quarter rose 3.2% year over year. The year-over-year rise in operating costs is building pressure on the bottom line. Further, the operating margin in the fourth quarter contracted 759 bps to 14.6%. Moreover, the company’s Life Science business declined 23.4% on a currency-neutral basis attributed to lower qPCR product revenues due to a decline in COVID-related demand.
Further, foreign-exchange woes, stiff competition and pandemic-led macroeconomic troubles persist.
Key Picks
A few better-ranked stocks in the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and AmerisourceBergen Corporation .
Henry Schein has an estimated long-term growth rate of 11.8%. Henry Schein’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein has outperformed the industry over the past year. HSIC has gained 41.9% compared with the industry’s 13.7% rise over the past year.
Owens & Minor has a long-term earnings growth rate of 23.6%. Owens & Minor’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 32.4%, on average. It carries a Zacks Rank #2 (Buy).
Owens & Minor has outperformed the industry over the past year. OMI has gained 41% compared with the 11.8% industry decline in the said period.
AmerisourceBergen has a long-term earnings growth rate of 8.2%. In the trailing four quarters, AmerisourceBergen’s earnings surpassed estimates in three quarters and missed in one, delivering an average surprise of 2.3%. The stock currently carries a Zacks Rank #2.
AmerisourceBergen has outperformed its industry in the past year, gaining 41.2% compared with the industry’s 13.7% rise.