BIO Gears Up for Q3 Earnings: Here's What You Need to Know

Bio-Rad Laboratories, Inc. BIO is scheduled to release third-quarter 2024 results on Oct. 30, after the closing bell.

The company posted adjusted earnings per share (EPS) of $3.11 in the last reported quarter, which beat the Zacks Consensus Estimate by 46.7%. Bio-Rad beat on earnings in three of the trailing four quarters and missed the same in one, the average surprise being 11.48%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

BIO’s Q3 Estimates

The Zacks Consensus Estimate for revenues is pegged at $639.9 million, suggesting a rise of 0.8% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS of $1.28 indicates a year-over-year decline of 45.1%.

Estimate Revision Trend Ahead of BIO’s Q3 Earnings

The Zacks Consensus Estimate for earnings has moved south 40.2% to $1.28 per share in the past 30 days.

Let’s look at how things might have shaped up prior to the announcement.

Factors at Play

Within the Life Science business, the ongoing weakness in the biotech and biopharma end markets has adversely impacted the sales of Life Science tools and bioprocessing products. Bio-Rad is also experiencing weaker demand in China. These factors are likely to have impeded the company’s growth in the third quarter.

Within the segment, process chromatography is expected to have witnessed a sales decline, reflecting the ongoing destocking trend across the industry.

Geographically, in Asia, funding in Japan remains constrained, reflecting a shrinking economy, while government spending on life science research remains soft as part of the reduction. The key European markets remain a mixed bag with lower funding in Germany, offset by more modest improvements in funding outlooks in the United Kingdom, France, and other EU countries. These, too, might have hurt Bio-Rad’s Life Sciences sales in the quarter to be reported.

However, the Life Science segment is likely to have witnessed demand for the Droplet Digital PCR (ddPCR) platform, reflecting growth in ddPCR reagents and consumables despite the constrained funding environment. The company is experiencing strong interest in its recently launched ddPCR assay kits targeted at the oncology and cell and gene therapy markets.

During the second quarter, the company launched two new important life science platforms — the ChemiDoc Imaging Systems, which is getting strong interest from customers, and a new cost-effective single-cell sample prep solution, which is in the early phase of product introduction. We expect these developments to have had a positive impact on the company’s third-quarter top-line performance.

Bio-Rad Laboratories, Inc. Price and EPS Surprise

Our model projects the segment’s revenues to increase 41.9% year over year to $267.6 million.

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 increased demand for quality control immunohematology and blood typing products. During the second quarter, on a geographic basis, revenues for the Diagnostics group posted growth across all three regions. We expect this trend to sustain in the third quarter as well.

Our model projects the segment’s revenues for the third quarter to increase 57.9% year over year to $369.7 million.

What Our Model Suggests for BIO

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.

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 reporting cycle.

Atea Pharmaceuticals AVIR has an Earnings ESP of +13.13% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company is expected to release third-quarter 2024 results on Nov. 13. AVIR’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 5.23%.

RadNet RDNT has an Earnings ESP of +20.00% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2024 results on Nov. 13.

RDNT’s earnings surpassed estimates in three of the trailing four quarters and met in one, the average surprise being 98.23%. The Zacks Consensus Estimate for RadNet’s third-quarter EPS is expected to increase 21.4% from the year-ago quarter’s reported figure.

TransMedics Group TMDX has an Earnings ESP of +26.63% and a Zacks Rank #3 at present. The company is likely to release third-quarter 2024 results on Nov. 4. The Zacks Consensus Estimate for EPS implies a surge of 333.3% from the year-ago quarter’s reported figure.

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Bio-Rad Laboratories, Inc. (BIO): Free Stock Analysis Report
 
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