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Bio-Rad Laboratories (BIO) to Post Q3 Earnings: What Awaits?
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Bio-Rad Laboratories, Inc. (BIO - Free Report) is set to release third-quarter 2023 results on Oct 26 after the closing bell.
The company posted adjusted earnings per share (EPS) of $3.00 in the last reported quarter, beating the Zacks Consensus Estimate by 17.7%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.27%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Life Science
Bio-Rad’s Life Science segment is likely to have witnessed year-over-year currency-neutral core revenue growth in the third quarter, driven by strong growth in Droplet Digital PCR and qPCR products. On the supply-chain front, Bio-Rad achieved the extended backlog reduction target during Q2 and does not foresee any constraints related to product supply in the second half of the year. We believe this to have benefited BIO’s top line in the to-be-reported quarter.
Per the earnings update in the last reported quarter, BIO is positive on continued demand for Life Science products in academic markets. The company witnessed the ongoing demand for its new QX600 Droplet Digital PCR System. We believe these positive trends to have contributed to the company’s top line through the third quarter.
During the second quarter, Bio-Rad completed a cross-licensing and royalty agreement with QIAGEN related to digital PCR intellectual property, which is likely to have benefited third-quarter revenues. Geographically, we anticipate the Life Science segment to have posted core organic revenue growth in the Americas and Europe, in line with the second quarter’s figure.
Our model suggests that Bio-Rad’s Life Sciences segment will grow 8.7% to $345.4 million in the quarter to be reported.
Clinical Diagnostics
Excluding COVID-19-related sales, core Clinical Diagnostics sales are expected to have increased in the third quarter from the prior-year period’s levels. The upside is likely to have been driven by robust demand for diagnostic instruments, primarily within blood typing and diabetes and growth from the quality control portfolio.
During the second quarter, Bio-Rad launched the IH-500 next instrument, including updated software, enhanced system functionality and increased security from potential cyberattacks. This platform update increases the competitiveness of our transfusion medicine portfolio. We believe this launch to have made a positive contribution to the company’s top line in the to-be-reported quarter.
We expect BIO’s product supply to increase through the third quarter as its new Singapore facility continues to ramp up. The company has improved its line of sight to reduce its backlog and continue to focus on expanding capacity.
We are also optimistic about the demand of Bio-Rad Clinical Diagnostics business with the increased placement of diagnostic systems supporting future growth and reagent pull-through. We expect this to have strong contribution to the company’s performance in the third quarter.
Market and operational challenges are likely to have impede growth in the third quarter.
Our model projects the segment’s revenues for the third quarter to decline 4.8% year over year to $344.7 million.
The company is expected to have witnessed headwinds from biopharma companies relating to funding constraints, which might have dragged the Life Science segment’s growth. As witnessed in the last quarter, the company’s gross margin is expected to have declined year over year due to the unfavorable product mix, the higher cost of raw materials and the higher-than-anticipated placement of clinical systems at low margins.
Q3 Estimates
The Zacks Consensus Estimate for Bio-Rad’s third-quarter 2023 revenues is pegged at $690.6 million, suggesting a rise of 1.5% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $2.87 indicates a year-over-year rise of 10.4%.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here.
Earnings ESP: Bio-Rad has an Earnings ESP of +0.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this time:
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS is expected to increase 65.9% from the year-ago reported figure.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +35.54% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
CPRX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.17%. The Zacks Consensus Estimate for Catalyst Pharmaceuticals’ third-quarter 2023 EPS is expected to rise 50% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share is expected to be 54.6% narrower from the year-ago reported figure.
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Bio-Rad Laboratories (BIO) to Post Q3 Earnings: What Awaits?
Bio-Rad Laboratories, Inc. (BIO - Free Report) is set to release third-quarter 2023 results on Oct 26 after the closing bell.
The company posted adjusted earnings per share (EPS) of $3.00 in the last reported quarter, beating the Zacks Consensus Estimate by 17.7%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.27%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Life Science
Bio-Rad’s Life Science segment is likely to have witnessed year-over-year currency-neutral core revenue growth in the third quarter, driven by strong growth in Droplet Digital PCR and qPCR products. On the supply-chain front, Bio-Rad achieved the extended backlog reduction target during Q2 and does not foresee any constraints related to product supply in the second half of the year. We believe this to have benefited BIO’s top line in the to-be-reported quarter.
Per the earnings update in the last reported quarter, BIO is positive on continued demand for Life Science products in academic markets. The company witnessed the ongoing demand for its new QX600 Droplet Digital PCR System. We believe these positive trends to have contributed to the company’s top line through the third quarter.
During the second quarter, Bio-Rad completed a cross-licensing and royalty agreement with QIAGEN related to digital PCR intellectual property, which is likely to have benefited third-quarter revenues. Geographically, we anticipate the Life Science segment to have posted core organic revenue growth in the Americas and Europe, in line with the second quarter’s figure.
Our model suggests that Bio-Rad’s Life Sciences segment will grow 8.7% to $345.4 million in the quarter to be reported.
Clinical Diagnostics
Excluding COVID-19-related sales, core Clinical Diagnostics sales are expected to have increased in the third quarter from the prior-year period’s levels. The upside is likely to have been driven by robust demand for diagnostic instruments, primarily within blood typing and diabetes and growth from the quality control portfolio.
During the second quarter, Bio-Rad launched the IH-500 next instrument, including updated software, enhanced system functionality and increased security from potential cyberattacks. This platform update increases the competitiveness of our transfusion medicine portfolio. We believe this launch to have made a positive contribution to the company’s top line in the to-be-reported quarter.
We expect BIO’s product supply to increase through the third quarter as its new Singapore facility continues to ramp up. The company has improved its line of sight to reduce its backlog and continue to focus on expanding capacity.
We are also optimistic about the demand of Bio-Rad Clinical Diagnostics business with the increased placement of diagnostic systems supporting future growth and reagent pull-through. We expect this to have strong contribution to the company’s performance in the third quarter.
Market and operational challenges are likely to have impede growth in the third quarter.
Bio-Rad Laboratories, Inc. Price and EPS Surprise
Bio-Rad Laboratories, Inc. price-eps-surprise | Bio-Rad Laboratories, Inc. Quote
Our model projects the segment’s revenues for the third quarter to decline 4.8% year over year to $344.7 million.
The company is expected to have witnessed headwinds from biopharma companies relating to funding constraints, which might have dragged the Life Science segment’s growth. As witnessed in the last quarter, the company’s gross margin is expected to have declined year over year due to the unfavorable product mix, the higher cost of raw materials and the higher-than-anticipated placement of clinical systems at low margins.
Q3 Estimates
The Zacks Consensus Estimate for Bio-Rad’s third-quarter 2023 revenues is pegged at $690.6 million, suggesting a rise of 1.5% from the year-ago reported figure.
The Zacks Consensus Estimate for its third-quarter 2023 EPS of $2.87 indicates a year-over-year rise of 10.4%.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here.
Earnings ESP: Bio-Rad has an Earnings ESP of +0.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this time:
Ligand Pharmaceuticals (LGND - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #1 (Strong Buy). The company is expected to release third-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
LGND’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 52.47%. The Zacks Consensus Estimate for Ligand Pharmaceuticals’ third-quarter EPS is expected to increase 65.9% from the year-ago reported figure.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +35.54% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
CPRX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 7.17%. The Zacks Consensus Estimate for Catalyst Pharmaceuticals’ third-quarter 2023 EPS is expected to rise 50% from the year-ago reported figure.
Spero Therapeutics (SPRO - Free Report) currently has an Earnings ESP of +60.00% and a Zacks Rank #2. The company is expected to release third-quarter 2023 results shortly.
SPRO’s earnings surpassed estimates in all the trailing four quarters, with the average surprise being 72.4%. The Zacks Consensus Estimate for Spero Therapeutics’ fiscal 2023 third-quarter loss per share is expected to be 54.6% narrower from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.