Bio-Rad (BIO) to Report Q4 Earnings: What's in the Cards?
Bio-Rad Laboratories, Inc. BIO is expected to report fourth-quarter 2022 results on Feb 16, after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of $2.60 surpassed the Zacks Consensus Estimate by 0.4%. Moreover, earnings beat the consensus estimate in each of the last four quarters. The trailing four-quarter average surprise is 31.52%.
Let's see how things are shaping up prior to the announcement.
Factors at Play
Bio-Rad’s Life Science segment has been registering robust revenue growth over the past few quarters. We expect this growth momentum to have continued in the fourth quarter on the back of sustained sales gains in terms of the company’s process media, western blotting, Droplet Digital PCR and qPCR products. During the third-quarter earnings update, the company stated that it continued to witness a strong order backlog for ddPCR instruments, which is expected to have made significant contributions to the fourth-quarter top line.
During the third quarter, BioRad launched the QX600 ddPCR system and witnessed a strong order pipeline. We believe this trend to have continued through the fourth quarter, led by strong market adoption, thus adding to Q4 revenues.
Our model suggests Life Science revenues of $351.8 million for the fourth quarter, suggesting 7.7% year-over-year growth.
Bio-Rad Laboratories, Inc. Price and EPS Surprise
Bio-Rad Laboratories, Inc. price-eps-surprise | Bio-Rad Laboratories, Inc. Quote
Bio-Rad, during the October update, noted that it is witnessing accelerated growth within the Clinical Diagnostics segment, driven by its strong business generation within blood-typing, quality control and infectious disease product. We expect this trend to have continued through the fourth quarter on the back of the continued opening of the economy. Moreover, we expect Bio-Rad to have witnessed increased consumables volume for diagnostics in the fourth quarter, driven by a strong recovery in routine testing markets.
However, due to the Russia-Ukraine war situation, supply chain constraints have been impacting instrument placements. Further, a decline in the number of COVID-19 cases across many countries compared to the year-ago period is likely to have hit demand for Bio-Rad's COVID-related products, thus impacting the company’s top line.
Our model projects Clinical Diagnostics revenues of $396.7 million for the fourth quarter, suggesting a 2.1% year-over-year decline.
The Zacks Consensus Estimate for Bio-Rad’s fourth-quarter revenues is pegged at $753.04 million, calling for a growth of 2.8% from the year-ago quarter’s figure.
The consensus estimate for earnings per share is pegged at $3.45, suggesting a rise of 7.5% from the prior-year reported figure.
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 higher chance of beating estimates. However, this is not the case here, as you can see:
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 (Sell).
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.
Cardinal Health CAH has an Earnings ESP of +5.75% and a Zacks Rank of #2. The company will release fourth-quarter 2022 results on Feb 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health has a long-term expected earnings growth rate of 11.7%. Cardinal Health’s earnings yield of 6.87% compares favorably with the industry’s 4.34%.
McKesson Corporation MCK has an Earnings ESP of +0.21% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter fiscal 2023 results on Feb 1.
MCK’s long-term historical earnings growth rate is estimated at 10.1%. MCK’s earnings yield of 6.49% compares favorably with the industry’s 4.34%.
Laboratory Corporation of America Holdings or LabCorp LH currently has an Earnings ESP of +2.67% and a Zacks Rank of #2. LabCorp is expected to release fourth-quarter 2022 results on Feb 16.
LabCorp’s long-term historical earnings growth rate is estimated at 26.1%. LabCorp’s earnings yield of 7.02% compares favorably with the industry’s 4.34%.
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