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) Rises 6.5% Since Q4 Earnings: What's Driving It?
Read MoreHide Full Article
Bio-Rad Laboratories’ (BIO - Free Report) shares have moved up 6.5% compared with the industry at break-even since its fourth-quarter fiscal 2022 earnings were released on Feb 16.
The renowned manufacturer and global supplier of clinical diagnostics and life science research products has a market capitalization of $14.31 billion.
This Zacks Rank #1 (Strong Buy) company’s earnings have surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 27.54%.
The rally was largely driven by growth in the international market. The company’s solid prospects in the blood typing market raise optimism. A strong solvency position continues to favor the stock.
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Catalysts
Focus on International Markets: Bio-Rad has been deriving more than 60% of its net sales from international markets. The company experienced double-digit currency-neutral core revenue growth in the Americas and Asia year over year. Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. On a geographic basis, the Diagnostics group’s currency-neutral core revenues rose in the Americas year over year. Within Clinical Diagnostics, currency neutral full-year core revenues grew in the Americas and Europe.
Solid Prospects in the Blood Typing Market: Bio-Rad offers a broad range of platforms, reagents, data management and connectivity solutions to cater to various blood typing demands, offering efficient and reliable results for blood grouping, phenotyping, crossmatching, antibody screening and identification, direct antiglobulin tests, and single antigen typing. The company has also been actively expanding its portfolio for the blood typing market. The company currently offers products like IH-500 and IH-1000.
Image Source: Zacks Investment Research
According to the latest report by Reports and Data, the global blood group typing market size is expected to reach $6.18 billion by 2028 at a CAGR of 10.1%. Taking this into account, we view the developmental steps undertaken by the company as progressive and strategically aligned.
Strong Solvency and Balance Sheet: Bio-Rad exited 2022 with cash and cash equivalents (including short-term investments) of 1.79 billion compared with $875.5 million at the end of 2021. Total debt (including current maturities) at the end of 2022 was $1.19 billion compared with $11 million at the end of 2021.This figure is lower than the quarter-end cash and cash equivalent and investments level, indicating strong solvency. This is good news in terms of the solvency position of the company, at least during the economic downturn, implying that the company is holding sufficient cash for debt repayment.
Favorable Parameters
For 2023, Bio-Rad has an expected earnings growth rate of 5.17%. Meanwhile, revenues are expected to grow 10.33% on a year-over-year basis.
Bio-Rad has a current ratio of 5.55 compared with the industry’s 2.28. The stock’s Debt/Capital ratio of 11.08% compares favorably with the industry’s 14.99%.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
Hologic has gained 1.7% against the industry’s 17.5% growth in the past year.
Henry Schein, carrying a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 12.4% compared with the industry’s 10.9% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 13.7% compared with the industry’s 17.5% decline in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bio-Rad (BIO) Rises 6.5% Since Q4 Earnings: What's Driving It?
Bio-Rad Laboratories’ (BIO - Free Report) shares have moved up 6.5% compared with the industry at break-even since its fourth-quarter fiscal 2022 earnings were released on Feb 16.
The renowned manufacturer and global supplier of clinical diagnostics and life science research products has a market capitalization of $14.31 billion.
This Zacks Rank #1 (Strong Buy) company’s earnings have surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 27.54%.
The rally was largely driven by growth in the international market. The company’s solid prospects in the blood typing market raise optimism. A strong solvency position continues to favor the stock.
Let’s take a quick look at the important catalysts to understand this positive trend.
Key Growth Catalysts
Focus on International Markets: Bio-Rad has been deriving more than 60% of its net sales from international markets. The company experienced double-digit currency-neutral core revenue growth in the Americas and Asia year over year. Europe posted a more modest increase, primarily reflecting ongoing supply chain constraints for diagnostic products. On a geographic basis, the Diagnostics group’s currency-neutral core revenues rose in the Americas year over year. Within Clinical Diagnostics, currency neutral full-year core revenues grew in the Americas and Europe.
Solid Prospects in the Blood Typing Market: Bio-Rad offers a broad range of platforms, reagents, data management and connectivity solutions to cater to various blood typing demands, offering efficient and reliable results for blood grouping, phenotyping, crossmatching, antibody screening and identification, direct antiglobulin tests, and single antigen typing. The company has also been actively expanding its portfolio for the blood typing market. The company currently offers products like IH-500 and IH-1000.
Image Source: Zacks Investment Research
According to the latest report by Reports and Data, the global blood group typing market size is expected to reach $6.18 billion by 2028 at a CAGR of 10.1%. Taking this into account, we view the developmental steps undertaken by the company as progressive and strategically aligned.
Strong Solvency and Balance Sheet: Bio-Rad exited 2022 with cash and cash equivalents (including short-term investments) of 1.79 billion compared with $875.5 million at the end of 2021. Total debt (including current maturities) at the end of 2022 was $1.19 billion compared with $11 million at the end of 2021.This figure is lower than the quarter-end cash and cash equivalent and investments level, indicating strong solvency. This is good news in terms of the solvency position of the company, at least during the economic downturn, implying that the company is holding sufficient cash for debt repayment.
Favorable Parameters
For 2023, Bio-Rad has an expected earnings growth rate of 5.17%. Meanwhile, revenues are expected to grow 10.33% on a year-over-year basis.
Bio-Rad has a current ratio of 5.55 compared with the industry’s 2.28. The stock’s Debt/Capital ratio of 11.08% compares favorably with the industry’s 14.99%.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has gained 1.7% against the industry’s 17.5% growth in the past year.
Henry Schein, carrying a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 12.4% compared with the industry’s 10.9% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 13.7% compared with the industry’s 17.5% decline in the past year.