We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bio-Rad (BIO) Thrives on Global Sales and Testing Uptake
Read MoreHide Full Article
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 0.1% against the industry’s 13.3% fall.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings and 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 a recovery of routine testing, which is now generally approaching pre-COVID levels.
Excluding COVID-related sales and the $32-million settlement for back royalties, Bio-Rad’s underlying Life Science business witnessed 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 experienced 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% in 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 at 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 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 the 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%, contracting 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 the decline in COVID-related demand.
Bio-Rad has been involved in the multi-year implementation of a new global enterprise resource planning (ERP) system. Any shortfall in the design or implementation of ERP might have a detrimental impact on the company’s abilities to process and dispatch orders, send invoices and track payments, meet contractual obligations or maintain normal business operations.
Key Picks
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 38.5% versus 53.5% decline of the industry.
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 currently has a Zacks Rank #2 (Buy).
Henry Schein has outperformed the industry over the past year. HSIC has gained 26% compared with the industry’s 7.6% rise over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 58.4% in the said period compared with 7.6% growth of the industry.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Bio-Rad (BIO) Thrives on Global Sales and Testing Uptake
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 0.1% against the industry’s 13.3% fall.
Bio-Rad exited the fourth quarter of 2021 on a mixed note with better-than-expected earnings and 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 a recovery of routine testing, which is now generally approaching pre-COVID levels.
Excluding COVID-related sales and the $32-million settlement for back royalties, Bio-Rad’s underlying Life Science business witnessed 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 experienced 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% in 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 at 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 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 the 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%, contracting 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 the decline in COVID-related demand.
Bio-Rad has been involved in the multi-year implementation of a new global enterprise resource planning (ERP) system. Any shortfall in the design or implementation of ERP might have a detrimental impact on the company’s abilities to process and dispatch orders, send invoices and track payments, meet contractual obligations or maintain normal business operations.
Key Picks
A few better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare has a long-term earnings growth rate of 16.2%. The company surpassed earnings estimates in the trailing four quarters, delivering a surprise of 19.5%, on average. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has outperformed its industry in the past year. AMN has gained 38.5% versus 53.5% decline of the industry.
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 currently has a Zacks Rank #2 (Buy).
Henry Schein has outperformed the industry over the past year. HSIC has gained 26% compared with the industry’s 7.6% rise over the past year.
McKesson has a long-term earnings growth rate of 11.8%. McKesson’s earnings surpassed estimates in the trailing four quarters, delivering a surprise of 20.6%, on average. It presently carries a Zacks Rank #2.
McKesson has outperformed the industry over the past year. MCK has gained 58.4% in the said period compared with 7.6% growth of the industry.