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) Q4 Earnings Beat, Revenues Miss, Margins Down
Read MoreHide Full Article
Bio-Rad Laboratories, Inc. (BIO - Free Report) posted fourth-quarter 2023 adjusted earnings per share (EPS) of $3.10, beating the Zacks Consensus Estimate by 5.8%. However, the bottom line declined 6.3% from the prior-year quarter’s levels.
The quarter’s adjustments eliminate the impacts of certain non-recurring items like the amortization of purchased intangibles, Restructuring costs, gains/losses from the change in the fair market value of equity securities and gains/losses on equity-method investments.
The company’s GAAP EPS was $12.14 per share in the fourth quarter compared to GAAP earnings of $27.78 in the year-ago quarter.
For the full year, adjusted earnings per share was $11.78, down 18.3% from 2022. However, it exceeded the Zacks Consensus Estimate by 1.6%.
Revenues in Detail
Revenues of $681.2 million in the fourth quarter missed the Zacks Consensus Estimate by 0.9%. The figure dropped 6.7% from the year-ago quarter’s levels (down 7.7% at the constant exchange rate or CER). The company reported COVID-19-related revenues of $0.3 million, a significant decline from $13.4 million reported a year ago.
For the full year, Bio-Rad reported revenues of $2.67 billion, missing the Zacks Consensus Estimate by 0.4%. It also declined 4.7% on a reported basis (down 4.1% at CER) from the 2022 level.
Segmental Analysis
Sales in the Life Science segment in the fourth quarter totaled $291.1 million, down 19.1% year over year and 19.9% at CER. Excluding pandemic-related sales, Life Science revenues declined 17% due to lower sales of ddPCR, qPCR and Western blotting products. This compares with our model’s projection of $279 million for the fourth quarter.
Net sales in the Clinical Diagnostics segment totaled $389 million, up 5.3% on a year-over-year basis and 4.2% at CER. Apart from COVID-19-related sales, revenues increased 4.3% year over year, led by the increased demand for strong demand for diabetes and quality-control-related products. This compares with our model’s projection of $408.9 million for the fourth quarter.
Bio-Rad Laboratories, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Bio-Rad’s gross profit fell 7.7% to $366.6 million.
The gross margin contracted 59 basis points (bps) to 53.8%. This can be attributed to a number of factors, including lower manufacturing volume, the impacts of inflation and inventory reserves.
Operating expenses were $271 million in the fourth quarter, down 2.7% year over year. The operating profit totaled $95.3 million, down 19.7% from the prior-year quarter’s levels. The operating margin in the fourth quarter contracted 226 bps to 13.9%.
Financial Update
Bio-Rad exited the fourth quarter of 2023 with cash and cash equivalents (including short-term investments) of $1.61 billion compared with $1.79 billion at the end of 2022. Total debt (including current maturities) at the end of the fourth quarter was $1.19 billion, almost in line with the reported figure at the end of 2022.
The cumulative net cash flow from operating activities at the end of 2023 was $374.9 million compared with the year-ago figure of $194.4 million.
2024 Guidance
Bio-Rad has provided its guidance for the full year 2024.
The company anticipates non-GAAP currency-neutral revenue growth of approximately 1%-2.5%. The Zacks Consensus Estimate for revenues is pegged at $2.68 billion.
The adjusted operating margin projection for the full year is 13.5%-14%.
Our Take
Bio-Rad exited the fourth quarter of 2023 on a mixed note, with an earnings beat and a revenue miss. The ongoing weaknesses in the biotech and biopharma end markets primarily impacted sales of the company’s Life Science segment products.Further, it continued to experience weak demand for Life Science products in China. Added to this, ddPCR and qPCR sales faced difficult comparisons due to the backorder burndown. These led to the year-over-year decrease in the quarter’s top line.
Meanwhile, a contraction in the margins also raises apprehension.
On a positive note, the company witnessed growth across the Clinical Diagnostics segment driven by increased demand for diabetes products, as well as from the reduction of elevated backorders.
Zacks Rank & Key Picks
Bio-Rad currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion increased 11.6% on a year-over-year basis and topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bio-Rad (BIO) Q4 Earnings Beat, Revenues Miss, Margins Down
Bio-Rad Laboratories, Inc. (BIO - Free Report) posted fourth-quarter 2023 adjusted earnings per share (EPS) of $3.10, beating the Zacks Consensus Estimate by 5.8%. However, the bottom line declined 6.3% from the prior-year quarter’s levels.
The quarter’s adjustments eliminate the impacts of certain non-recurring items like the amortization of purchased intangibles, Restructuring costs, gains/losses from the change in the fair market value of equity securities and gains/losses on equity-method investments.
The company’s GAAP EPS was $12.14 per share in the fourth quarter compared to GAAP earnings of $27.78 in the year-ago quarter.
For the full year, adjusted earnings per share was $11.78, down 18.3% from 2022. However, it exceeded the Zacks Consensus Estimate by 1.6%.
Revenues in Detail
Revenues of $681.2 million in the fourth quarter missed the Zacks Consensus Estimate by 0.9%. The figure dropped 6.7% from the year-ago quarter’s levels (down 7.7% at the constant exchange rate or CER). The company reported COVID-19-related revenues of $0.3 million, a significant decline from $13.4 million reported a year ago.
For the full year, Bio-Rad reported revenues of $2.67 billion, missing the Zacks Consensus Estimate by 0.4%. It also declined 4.7% on a reported basis (down 4.1% at CER) from the 2022 level.
Segmental Analysis
Sales in the Life Science segment in the fourth quarter totaled $291.1 million, down 19.1% year over year and 19.9% at CER. Excluding pandemic-related sales, Life Science revenues declined 17% due to lower sales of ddPCR, qPCR and Western blotting products. This compares with our model’s projection of $279 million for the fourth quarter.
Net sales in the Clinical Diagnostics segment totaled $389 million, up 5.3% on a year-over-year basis and 4.2% at CER. Apart from COVID-19-related sales, revenues increased 4.3% year over year, led by the increased demand for strong demand for diabetes and quality-control-related products. This compares with our model’s projection of $408.9 million for the fourth quarter.
Bio-Rad Laboratories, Inc. Price, Consensus and EPS Surprise
Bio-Rad Laboratories, Inc. price-consensus-eps-surprise-chart | Bio-Rad Laboratories, Inc. Quote
Margins
In the quarter under review, Bio-Rad’s gross profit fell 7.7% to $366.6 million.
The gross margin contracted 59 basis points (bps) to 53.8%. This can be attributed to a number of factors, including lower manufacturing volume, the impacts of inflation and inventory reserves.
Operating expenses were $271 million in the fourth quarter, down 2.7% year over year. The operating profit totaled $95.3 million, down 19.7% from the prior-year quarter’s levels. The operating margin in the fourth quarter contracted 226 bps to 13.9%.
Financial Update
Bio-Rad exited the fourth quarter of 2023 with cash and cash equivalents (including short-term investments) of $1.61 billion compared with $1.79 billion at the end of 2022. Total debt (including current maturities) at the end of the fourth quarter was $1.19 billion, almost in line with the reported figure at the end of 2022.
The cumulative net cash flow from operating activities at the end of 2023 was $374.9 million compared with the year-ago figure of $194.4 million.
2024 Guidance
Bio-Rad has provided its guidance for the full year 2024.
The company anticipates non-GAAP currency-neutral revenue growth of approximately 1%-2.5%. The Zacks Consensus Estimate for revenues is pegged at $2.68 billion.
The adjusted operating margin projection for the full year is 13.5%-14%.
Our Take
Bio-Rad exited the fourth quarter of 2023 on a mixed note, with an earnings beat and a revenue miss. The ongoing weaknesses in the biotech and biopharma end markets primarily impacted sales of the company’s Life Science segment products.Further, it continued to experience weak demand for Life Science products in China. Added to this, ddPCR and qPCR sales faced difficult comparisons due to the backorder burndown. These led to the year-over-year decrease in the quarter’s top line.
Meanwhile, a contraction in the margins also raises apprehension.
On a positive note, the company witnessed growth across the Clinical Diagnostics segment driven by increased demand for diabetes products, as well as from the reduction of elevated backorders.
Zacks Rank & Key Picks
Bio-Rad currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Stryker Corporation (SYK - Free Report) , Cencora, Inc. (COR - Free Report) and Cardinal Health (CAH - Free Report) .
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health, carrying a Zacks Rank #2, reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion increased 11.6% on a year-over-year basis and topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.