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Bio-Rad (Bio) Q2 Earnings Beat Estimates, Margins Expand

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Bio-Rad Laboratories, Inc. (BIO - Free Report) posted second-quarter 2019 adjusted earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate by 12.9%. The bottom line however fell 4.3% from the prior-year quarter.

Reported EPS in the quarter was $19.86 compared with $8.87 a year ago.

Revenues in Detail

Revenues in the quarter totaled $572.6 million, beating the Zacks Consensus Estimate by 1.7%. Revenues fell 0.6% from the year-ago quarter (up 2.7% at constant currency or cc).

Per management, solid demand across many of its key product lines led to growth across most geographical regions.

Bio-Rad Laboratories, Inc. Price, Consensus and EPS Surprise

 

Bio-Rad Laboratories, Inc. Price, Consensus and EPS Surprise

Bio-Rad Laboratories, Inc. price-consensus-eps-surprise-chart | Bio-Rad Laboratories, Inc. Quote

Segmental Analysis

Sales at the Life Sciences segment in the second quarter totaled $212.4 million, down 2.5% year over year and 0.1% at cc. Excluding Process Media sales, the Life Science business saw 7.5% year-over-year growth on a currency neutral basis.

Net sales at Clinical Diagnostics segment totaled $357.1 million, up 0.9% on a year-over-year basis and 4.8% at cc. This upside was primarily driven by solid growth in Quality Controls, Immunology, and Diabetes product lines across all three geographies.

Margins

Gross profit in the reported quarter totaled $307.8 million, up 2% from the prior-year quarter. Gross margin came in at 53.7%, expanding 137 basis points (bps). Operating margin was 9.8%, up 224 bps.

2019 Guidance Reaffirmed

For 2019, the company has reaffirmed its revenue growth guidance at 4-4.5% (cc). The Zacks Consensus Estimate for the same is pegged at $2.35 billion.

Our Take

Bio-Rad exited the second quarter of 2019 with better-than-expected results. The company also witnessed solid revenue growth at the Clinical Diagnostics segment. Further, strength in many of the company’s key product lines across major geographic regions buoys optimism. The solid expansion in both margins is also impressive.

On the flip side, the year-over-year fall in earnings and a decline at the Life Sciences segment revenues are worrying.

Zacks Rank & Key Picks

Bio-Rad has a Zacks Rank #3 (Hold).

Some better-ranked companies, which posted solid results this earnings season, are Stryker Corporation (SYK - Free Report) , Baxter International Inc. (BAX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) .

Stryker delivered second-quarter 2019 adjusted EPS of $1.98, beating the Zacks Consensus Estimate by 2.6%. Revenues of $3.65 billion surpassed the Zacks Consensus Estimate by 1.4%. The company carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter delivered second-quarter 2019 adjusted EPS of 89 cents, which surpassed the Zacks Consensus Estimate of 81 cents by 9.9%. Revenues of $2.84 billion beat the Zacks Consensus Estimate of $2.79 billion by 1.9%. The company holds a Zacks Rank #2.

Intuitive Surgical reported second-quarter 2019 adjusted EPS of $3.25, which beat the Zacks Consensus Estimate of $2.85. Revenues were $1.1 billion, surpassing the Zacks Consensus Estimate of $1.03 billion. The company sports a Zacks Rank #1.

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