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Bio-Rad (BIO) to Report Q2 Earnings: What's in the Cards?

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Bio-Rad Laboratories, Inc. (BIO - Free Report) is slated to report second-quarter fiscal 2021 results on Jul 29, after the closing bell.

In the last-reported quarter, the company’s earnings per share (EPS) of $5.21 surpassed the Zacks Consensus Estimate by 108.4%. Moreover, earnings beat the consensus estimate in the last four quarters. The trailing four-quarter average surprise is 55.94%.

Let's see how things are shaping up prior to the announcement.

Factors at Play

Life Science

Through the pandemic, Bio-Rad has witnessed a pronounced change in product demand across the company’s portfolio, including major shift toward COVID-19 testing and research-related products.

Similar to the last-reported first quarter, Bio-Rad is expected to have maintained strength in its Life Science segment in the second quarter of fiscal 2021. Robust sales of Bio-Rad’s core Polymerase Chain Reaction (PCR) and Droplet Digital PCR products (dPCR), and Process Media are likely to have maintained momentum in the first quarter as well, similar to the past few months. These factors are expected to have made significant contributions to the top line.

BioRad Laboratories, Inc. Price and EPS Surprise

During the first quarter, the company witnessed high demand for QX ONE in wastewater testing applications. In June 2021, Bio-Rad launched PREvalence ddPCR SARS-CoV-2 Wastewater Quantification Kit. We believe these products have witnessed continued strong demand through the fiscal second quarter due to the resurgence of the new COVID-19 variant. These are likely to have contributed to the company’s revenue growth in the to-be reported quarter.

However, the improving market scenario, normalization of economy and drop in COVID-19 case count might have affected Bio-Rad’s COVID-19 testing revenues in the fiscal second quarter.

Clinical Diagnostics

During the first-quarter earnings update, the company noted the recovery of market demand for non-COVID business, with diagnostics labs business returning to about 90% of pre-COVID levels. The company also witnessed recovery in routine testing and elective surgeries during the first quarter. Considering the gradual market recovery and increase in clinic visit, we expect this to have continued through the fiscal second quarter, thus adding to the top line.

Estimate Picture

For second-quarter fiscal 2021, the Zacks Consensus Estimate for total revenues of $610.4 million implies growth of 13.7% from the prior-year reported figure.

The consensus estimate for earnings per share is pegged at $1.90, indicating an improvement of 18% from the prior-year reported figure.

What Our Model Suggests

Our proven model does not conclusively predict an earnings beat for Bio-Rad this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

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 #3.

Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to beat on earnings this reporting cycle.

Hill-Rom Holdings, Inc. currently has an Earnings ESP of +0.56% and a Zacks Rank #2. The stock is slated to release third-quarter fiscal 2021 results on Jul 30.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank of 2, at present. The stock is expected to release second-quarter 2021 results on Aug 3.

Laboratory Corporation of America Holdings (LH - Free Report) has an Earnings ESP of +6.53% and a Zacks Rank of 2, at present. The company is scheduled to release second-quarter 2021 results on Jul 29.


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Labcorp (LH) - free report >>

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Bio-Rad Laboratories, Inc. (BIO) - free report >>

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