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Bio-Rad (BIO) Global Expansion Strong, FX Woe Dents Growth
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Bio-Rad (BIO - Free Report) is currently focused on international expansion. Yet, unfavorable macroeconomic conditions continue to weigh heavily on its stocks. The stock currently carries a Zacks Rank #3 (Hold).
In the past year, Bio-Rad has outperformed its industry. The stock has declined 3.9% compared with the industry’s 37.4% fall.
On a geographic basis, in the fourth quarter of 2022, the company experienced double-digit currency-neutral year-over-year core revenue growth in the Americas and Asia while Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. The majority of the year-over-year core growth was driven by Droplet Digital PCR, process chromatography, qPCR products and Western blot. The company’s expectation of registering currency-neutral revenue growth in the range of 6-7% is encouraging.
Bio-Rad has been deriving more than 60% of its net sales from international markets. The company experienced double-digit currency-neutral year-over-year core revenue growth in the Americas and Asia while Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. On a geographic basis, the Diagnostics group’s year-over-year currency-neutral core revenues rose in the Americas. Within Clinical Diagnostics, currency-neutral full-year core revenues grew in the Americas and Europe.
Bio-Rad offers a broad range of platforms, reagents, data management and connectivity solutions to cater to various blood typing demands, offering efficient and reliable results for blood grouping, phenotyping, crossmatching, antibody screening and identification, direct antiglobulin tests and single antigen typing. The company has also been actively expanding its portfolio for the blood typing market. The company currently offers products like IH-500 and IH-1000.
According to the latest report by Reports and Data, the global blood group typing market size is expected to reach $6.18 billion by 2028 at a CAGR of 10.1%. Taking this into account, we view the developmental steps undertaken by the company as progressive and strategically aligned.
On the flip side, During the fourth quarter, Bio-Rad’s Clinical Diagnostics arm registered an 8.7% year-over-year decline. Core clinical diagnostics’ revenues, which exclude COVID-related sales, declined 1.9% on a currency neutral basis.
Clinical Diagnostics was primarily impacted by ongoing supply chain constraints, which delayed instrument placements across multiple platforms and the uptake of associated consumables. In addition to supply chain constraints, Asia Pacific sales were also affected by COVID dynamics in China, resulting in a lower volume of routine testing.
In this regard, we note that Bio-Rad derives more than 50% of its revenues from the international market, which exposes it to the effects of fluctuations in foreign currency. In the past several years, the company’s earnings were significantly affected by foreign exchange.
In the quarter under review, Bio-Rad’s gross profit fell 0.7%. Gross margin contracted 20 basis points to 54.4%.
Key Picks
Some better-ranked stocks in the broader Medical sector are Haemonetics Corporation (HAE - Free Report) , TerrAscend Corp. and Akerna Corp. . Haemonetics and TerrAscend both sport a Zacks Rank #1 (Strong Buy) while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 42.1% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to $2.91 for 2023, and from $3.02 per share to $3.28 for 2024 in the past 30 days.
HAE’s earnings beat estimates in all the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in all the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.
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Bio-Rad (BIO) Global Expansion Strong, FX Woe Dents Growth
Bio-Rad (BIO - Free Report) is currently focused on international expansion. Yet, unfavorable macroeconomic conditions continue to weigh heavily on its stocks. The stock currently carries a Zacks Rank #3 (Hold).
In the past year, Bio-Rad has outperformed its industry. The stock has declined 3.9% compared with the industry’s 37.4% fall.
On a geographic basis, in the fourth quarter of 2022, the company experienced double-digit currency-neutral year-over-year core revenue growth in the Americas and Asia while Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. The majority of the year-over-year core growth was driven by Droplet Digital PCR, process chromatography, qPCR products and Western blot. The company’s expectation of registering currency-neutral revenue growth in the range of 6-7% is encouraging.
Bio-Rad has been deriving more than 60% of its net sales from international markets. The company experienced double-digit currency-neutral year-over-year core revenue growth in the Americas and Asia while Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. On a geographic basis, the Diagnostics group’s year-over-year currency-neutral core revenues rose in the Americas. Within Clinical Diagnostics, currency-neutral full-year core revenues grew in the Americas and Europe.
Bio-Rad Laboratories, Inc. Price
Bio-Rad Laboratories, Inc. price | Bio-Rad Laboratories, Inc. Quote
Bio-Rad offers a broad range of platforms, reagents, data management and connectivity solutions to cater to various blood typing demands, offering efficient and reliable results for blood grouping, phenotyping, crossmatching, antibody screening and identification, direct antiglobulin tests and single antigen typing. The company has also been actively expanding its portfolio for the blood typing market. The company currently offers products like IH-500 and IH-1000.
According to the latest report by Reports and Data, the global blood group typing market size is expected to reach $6.18 billion by 2028 at a CAGR of 10.1%. Taking this into account, we view the developmental steps undertaken by the company as progressive and strategically aligned.
On the flip side, During the fourth quarter, Bio-Rad’s Clinical Diagnostics arm registered an 8.7% year-over-year decline. Core clinical diagnostics’ revenues, which exclude COVID-related sales, declined 1.9% on a currency neutral basis.
Clinical Diagnostics was primarily impacted by ongoing supply chain constraints, which delayed instrument placements across multiple platforms and the uptake of associated consumables. In addition to supply chain constraints, Asia Pacific sales were also affected by COVID dynamics in China, resulting in a lower volume of routine testing.
In this regard, we note that Bio-Rad derives more than 50% of its revenues from the international market, which exposes it to the effects of fluctuations in foreign currency. In the past several years, the company’s earnings were significantly affected by foreign exchange.
In the quarter under review, Bio-Rad’s gross profit fell 0.7%. Gross margin contracted 20 basis points to 54.4%.
Key Picks
Some better-ranked stocks in the broader Medical sector are Haemonetics Corporation (HAE - Free Report) , TerrAscend Corp. and Akerna Corp. . Haemonetics and TerrAscend both sport a Zacks Rank #1 (Strong Buy) while Akerna carries a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics’ stock has risen 42.1% in the past year. Earnings estimates for Haemonetics have increased from $2.87 per share to $2.91 for 2023, and from $3.02 per share to $3.28 for 2024 in the past 30 days.
HAE’s earnings beat estimates in all the last four quarters, delivering an average surprise of 10.98%. In the last reported quarter, it reported an earnings surprise of 7.59%.
Estimates for TerrAscend in 2023 have remained constant at a loss of 10 cents per share in the past 30 days. Shares of TerrAscend have declined 70.6% in the past year.
TerrAscend’s earnings beat estimates in one of the last three quarters and missed the mark in the other two, the average negative surprise being 136.11%. In the last reported quarter, TRSSF delivered an earnings surprise of 216.67%.
Akerna’s stock has declined 95.7% in the past year. Its estimates for 2023 have remained constant at a loss of $1.91 per share over the past 30 days.
Akerna missed earnings estimates in all the last four quarters, delivering a negative earnings surprise of 15.49%, on average. In the last reported quarter, KERN delivered a negative earnings surprise of 13.33%.