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Bio-Rad Laboratories (BIO) to Post Q4 Earnings: What Awaits?
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Bio-Rad Laboratories, Inc. (BIO - Free Report) is set to release fourth-quarter 2023 results on Feb 15 after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.33 in the last reported quarter, missing the Zacks Consensus Estimate by 18.8%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average negative surprise being 0.54%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Life Science
The Life Science segment is likely to have witnessed year-over-year currency-neutral core revenue growth in the fourth quarter, driven by strong growth in Droplet Digital PCR and qPCR products. In the third quarter, within Life Science Group, academic and government sales for Life Sciences were strong in the Americas, encouraged by several noteworthy announcements involving ddPCR. We believe these to have made a positive contribution to Life Sciences sales in the fourth quarter as well.
Per the last earnings update, on the clinical testing front, the Bio-Rad QX ONE platform has been selected for SMA testing for all newborns in Hong Kong and in the United States, Geneoscopy announced they have published the results of their pivotal CRC-PREVENT clinical trial, reporting the highest sensitivity for detecting colorectal cancer amongst similar tests powered by BIO’s QXDx ddPCR platform. In the United States, Verily won a major multi-year national wastewater testing contract from the CDC based on the company’s QX600 platform. We believe these developments to have boosted the company’s growth in the to-be-reported quarter.
However, the ongoing weakness in the biopharma end markets, impacting the sales of Life Science tools and bioprocessing products, is likely to have impeded the company’s growth in the fourth quarter. Bio-Rad is also experiencing weaker demand in China as a result of the macroeconomic environment as well as the local made-in-China initiatives, which is likely to have dented the company’s growth.
Our model suggests that Bio-Rad’s Life Sciences segment will decline 22.4% to $279 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 fourth quarter from the prior-year period’s levels. The upside is likely to have been driven by robust demand for diagnostic testing systems and quality control products, primarily within diabetes and blood typing and growth from the quality control portfolio.
The launch of the IH-500 next instrument, including updated software, enhanced system functionality, and increased security from potential cyberattacks, is expected to have made a positive contribution to the company’s top line in the to-be-reported quarter.
Our model projects the segment’s revenues for the fourth quarter to increase 10.6% year over year to $408.9 million.
Q4 Estimates
The Zacks Consensus Estimate for Bio-Rad’s fourth-quarter 2023 revenues is pegged at $688 million, suggesting a fall of 5.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $2.93 indicates a year-over-year fall of 11.5%.
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 0.00%. 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 in their upcoming release.
RxSight’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 18.25%. The Zacks Consensus Estimate for RXST’s fourth-quarter EPS indicates an increase of 35.7% from the year-ago reported figure.
Veru (VERU - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #2. The company is scheduled to release first-quarter fiscal 2024 results on Feb 8.
Veru’s earnings surpassed estimates in two of the trailing four quarters and lagged in two, with the average surprise being 0.16%. The Zacks Consensus Estimate for Veru’s fiscal 2024 first-quarter revenues indicates an improvement of 107.2% from the year-ago reported figure.
Health Catalyst (HCAT - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
Health Catalyst’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 185.42%. The Zacks Consensus Estimate for HCAT’s fourth-quarter 2023 EPS implies an increase of 80% from the year-ago reported figure.
Image: Bigstock
Bio-Rad Laboratories (BIO) to Post Q4 Earnings: What Awaits?
Bio-Rad Laboratories, Inc. (BIO - Free Report) is set to release fourth-quarter 2023 results on Feb 15 after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.33 in the last reported quarter, missing the Zacks Consensus Estimate by 18.8%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average negative surprise being 0.54%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Life Science
The Life Science segment is likely to have witnessed year-over-year currency-neutral core revenue growth in the fourth quarter, driven by strong growth in Droplet Digital PCR and qPCR products. In the third quarter, within Life Science Group, academic and government sales for Life Sciences were strong in the Americas, encouraged by several noteworthy announcements involving ddPCR. We believe these to have made a positive contribution to Life Sciences sales in the fourth quarter as well.
Per the last earnings update, on the clinical testing front, the Bio-Rad QX ONE platform has been selected for SMA testing for all newborns in Hong Kong and in the United States, Geneoscopy announced they have published the results of their pivotal CRC-PREVENT clinical trial, reporting the highest sensitivity for detecting colorectal cancer amongst similar tests powered by BIO’s QXDx ddPCR platform. In the United States, Verily won a major multi-year national wastewater testing contract from the CDC based on the company’s QX600 platform. We believe these developments to have boosted the company’s growth in the to-be-reported quarter.
However, the ongoing weakness in the biopharma end markets, impacting the sales of Life Science tools and bioprocessing products, is likely to have impeded the company’s growth in the fourth quarter. Bio-Rad is also experiencing weaker demand in China as a result of the macroeconomic environment as well as the local made-in-China initiatives, which is likely to have dented the company’s growth.
Bio-Rad Laboratories, Inc. Price and EPS Surprise
Bio-Rad Laboratories, Inc. price-eps-surprise | Bio-Rad Laboratories, Inc. Quote
Our model suggests that Bio-Rad’s Life Sciences segment will decline 22.4% to $279 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 fourth quarter from the prior-year period’s levels. The upside is likely to have been driven by robust demand for diagnostic testing systems and quality control products, primarily within diabetes and blood typing and growth from the quality control portfolio.
The launch of the IH-500 next instrument, including updated software, enhanced system functionality, and increased security from potential cyberattacks, is expected to have made a positive contribution to the company’s top line in the to-be-reported quarter.
Our model projects the segment’s revenues for the fourth quarter to increase 10.6% year over year to $408.9 million.
Q4 Estimates
The Zacks Consensus Estimate for Bio-Rad’s fourth-quarter 2023 revenues is pegged at $688 million, suggesting a fall of 5.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its fourth-quarter 2023 EPS of $2.93 indicates a year-over-year fall of 11.5%.
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 0.00%. 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 in their upcoming release.
RxSight (RXST - Free Report) has an Earnings ESP of +3.85% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.
RxSight’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 18.25%. The Zacks Consensus Estimate for RXST’s fourth-quarter EPS indicates an increase of 35.7% from the year-ago reported figure.
Veru (VERU - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank #2. The company is scheduled to release first-quarter fiscal 2024 results on Feb 8.
Veru’s earnings surpassed estimates in two of the trailing four quarters and lagged in two, with the average surprise being 0.16%. The Zacks Consensus Estimate for Veru’s fiscal 2024 first-quarter revenues indicates an improvement of 107.2% from the year-ago reported figure.
Health Catalyst (HCAT - Free Report) has an Earnings ESP of +300.00% and a Zacks Rank #2. The company is expected to release fourth-quarter 2023 results shortly.
Health Catalyst’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 185.42%. The Zacks Consensus Estimate for HCAT’s fourth-quarter 2023 EPS implies an increase of 80% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.