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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 scheduled to release second-quarter 2024 results on Aug 1, after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.29 in the last reported quarter, beating the Zacks Consensus Estimate by 12.25%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.22%.
Earnings Whispers
The Zacks Consensus Estimate for Bio-Rad’s second-quarter 2024 revenues is pegged at $648.6 million, suggesting a fall of 4.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2024 EPS of $2.12 indicates a year-over-year decline of 29.3%.
Estimate Revision Trend Ahead of Earnings
The Zacks Consensus Estimate for Bio-Rad’s second-quarter earnings has been raised by 1% to $2.12 per share in the past 60 days.
Let’s look at how things have shaped up before this announcement.
Life Science
Within the Life Science business, the ongoing weakness in the biotech and biopharma end markets has been severely impacting sales of Life Science tools and bioprocessing products. This is likely to have impeded the company’s growth in the second quarter as well. Bio-Rad is also experiencing weaker demand in China as a result of the macroeconomic environment and the local made-in-China initiatives, which are likely to have dented the company’s growth. The company is also witnessing a dull business situation in Russia, where it supplies critical clinical diagnostic products due to the imposition of certain sanctions. This, too, might have caused a negative impact on Bio-Rad’s Life Sciences sales in the second quarter.
Within the United States, in bioprocessing product families, process chromatography is expected to have witnessed a sales decline, reflecting the general destocking trend across the industry. Sales in the second quarter might have been significantly hurt by the fact that a few large customers are still working through excess inventory.
However, the Life Science segment is likely to have witnessed demand for the Droplet Digital PCR platform in the second quarter. The company is particularly expected to gain from two recent deals. The first involves Allegheny Health Network, focused on generating clinical evidence across a range of cancer types using Bio Rad's droplet digital PCR technology for tumor-informed minimal residual disease monitoring of patients with solid tumor cancer following treatment. The second agreement is a collaboration with oncocytes to commercialize their advanced transplant monitoring assays, deploying Bio-Rads Qx600 droplet digital PCR system to provide a highly sensitive solution that could offer a more attractive alternative for laboratories that currently rely on centralized next-generation sequencing test providers.
Backed by the tremendous customer response, the company took the initiative to ramp up production capacity to accommodate the ongoing demand.
Our model suggests that Bio-Rad’s Life Sciences segment will decline 6.6% to $280.5 million in the quarter to be reported.
Clinical Diagnostics
Core Clinical Diagnostics sales are expected to have increased in the second quarter from the prior-year period’s levels. The upside is likely to have been driven by strength in diabetes product sales, quality control immunohematology and blood typing products. During the first quarter, management noted that instrument supply for the company’s clinical platform is now stabilized as the company is benefiting from the new manufacturing facility in Singapore, which is fully operational. We believe this trend to have continued through the second quarter as well, thus adding to the top line.
However, the ongoing tightening of sanctions against Russia is making conditions for meeting demand for clinical business increasingly more challenging. This is likely to impede the company’s growth in the to-be-reported quarter.
Our model projects the segment’s revenues for the second quarter to decline 3.9% year over year to $365.2 million.
What Our Model Suggests
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 #3.
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 quarter:
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates an increase of 266.7% from the year-ago quarter figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 5.64%. The Zacks Consensus Estimate for HCA Healthcare’s second-quarter EPS indicates a jump of 15.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS implies an improvement of 30.2% from the year-ago reported figure.
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Bio-Rad (BIO) to Report Q2 Earnings: What's in the Cards?
Bio-Rad Laboratories, Inc. (BIO - Free Report) is scheduled to release second-quarter 2024 results on Aug 1, after the closing bell.
The company posted adjusted earnings per share (EPS) of $2.29 in the last reported quarter, beating the Zacks Consensus Estimate by 12.25%. Bio-Rad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average surprise being 4.22%.
Earnings Whispers
The Zacks Consensus Estimate for Bio-Rad’s second-quarter 2024 revenues is pegged at $648.6 million, suggesting a fall of 4.8% from the year-ago reported figure.
The Zacks Consensus Estimate for its second-quarter 2024 EPS of $2.12 indicates a year-over-year decline of 29.3%.
Estimate Revision Trend Ahead of Earnings
The Zacks Consensus Estimate for Bio-Rad’s second-quarter earnings has been raised by 1% to $2.12 per share in the past 60 days.
Let’s look at how things have shaped up before this announcement.
Life Science
Within the Life Science business, the ongoing weakness in the biotech and biopharma end markets has been severely impacting sales of Life Science tools and bioprocessing products. This is likely to have impeded the company’s growth in the second quarter as well. Bio-Rad is also experiencing weaker demand in China as a result of the macroeconomic environment and the local made-in-China initiatives, which are likely to have dented the company’s growth. The company is also witnessing a dull business situation in Russia, where it supplies critical clinical diagnostic products due to the imposition of certain sanctions. This, too, might have caused a negative impact on Bio-Rad’s Life Sciences sales in the second quarter.
Bio-Rad Laboratories, Inc. Price and EPS Surprise
Bio-Rad Laboratories, Inc. price-eps-surprise | Bio-Rad Laboratories, Inc. Quote
Within the United States, in bioprocessing product families, process chromatography is expected to have witnessed a sales decline, reflecting the general destocking trend across the industry. Sales in the second quarter might have been significantly hurt by the fact that a few large customers are still working through excess inventory.
However, the Life Science segment is likely to have witnessed demand for the Droplet Digital PCR platform in the second quarter. The company is particularly expected to gain from two recent deals. The first involves Allegheny Health Network, focused on generating clinical evidence across a range of cancer types using Bio Rad's droplet digital PCR technology for tumor-informed minimal residual disease monitoring of patients with solid tumor cancer following treatment. The second agreement is a collaboration with oncocytes to commercialize their advanced transplant monitoring assays, deploying Bio-Rads Qx600 droplet digital PCR system to provide a highly sensitive solution that could offer a more attractive alternative for laboratories that currently rely on centralized next-generation sequencing test providers.
Backed by the tremendous customer response, the company took the initiative to ramp up production capacity to accommodate the ongoing demand.
Our model suggests that Bio-Rad’s Life Sciences segment will decline 6.6% to $280.5 million in the quarter to be reported.
Clinical Diagnostics
Core Clinical Diagnostics sales are expected to have increased in the second quarter from the prior-year period’s levels. The upside is likely to have been driven by strength in diabetes product sales, quality control immunohematology and blood typing products. During the first quarter, management noted that instrument supply for the company’s clinical platform is now stabilized as the company is benefiting from the new manufacturing facility in Singapore, which is fully operational. We believe this trend to have continued through the second quarter as well, thus adding to the top line.
However, the ongoing tightening of sanctions against Russia is making conditions for meeting demand for clinical business increasingly more challenging. This is likely to impede the company’s growth in the to-be-reported quarter.
Our model projects the segment’s revenues for the second quarter to decline 3.9% year over year to $365.2 million.
What Our Model Suggests
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 #3.
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 quarter:
Hims & Hers Health (HIMS - Free Report) has an Earnings ESP of +19.28% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Aug 5.
HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed the same once, with the average surprise being 79.17%. The Zacks Consensus Estimate for the company’s second-quarter EPS indicates an increase of 266.7% from the year-ago quarter figure.
HCA Healthcare (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank #2. The company is slated to release results for the second quarter of 2024 on Jul 23.
HCA’s earnings surpassed estimates in three of the trailing four quarters, with the average surprise being 5.64%. The Zacks Consensus Estimate for HCA Healthcare’s second-quarter EPS indicates a jump of 15.9% from the year-ago quarter figure.
Penumbra (PEN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #2. The company is scheduled to release results for the second quarter of 2024 on Jul 30.
The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, with the average surprise being 25.97%. The Zacks Consensus Estimate for PEN’s 2024 second-quarter EPS implies an improvement of 30.2% from the year-ago reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.