Yahoo Finance BioRad Laboratories (BIO) to Post Q1 Earnings: What's in Store?
BioRad Laboratories, Inc. BIO is set to release first-quarter 2023 results on May 4 after the closing bell.
The company posted adjusted earnings per share (EPS) of $3.31 in the last reported quarter, which missed the Zacks Consensus Estimate by 4.06%. BioRad beat earnings estimates in three of the trailing four quarters and missed the same in one, the average surprise being 27.54%.
Let’s look at how things have shaped up before this announcement.
Factors at Play
Bio-Rad’s Life Science segment has been registering robust revenues over the past few quarters, driven by sustained sales in Droplet Digital PCR and qPCR products, process chromatography and western blotting. In the last reported quarter, BIO delivered solid organic revenues from this segment, partly contributed by the reduction of back-orders. We expect this growth momentum to have continued in the first quarter of 2023.
On its fourth-quarter 2022 earnings call, BioRad noted witnessing strong order placements for its QX600 Droplet Digital PCR platform. With digital PCR in focus now, this is expected to have made significant contributions to first-quarter revenues as well.
Bio-Rad Laboratories, Inc. Price and EPS Surprise
Bio-Rad Laboratories, Inc. price-eps-surprise | Bio-Rad Laboratories, Inc. Quote
BioRad’s process chromatography franchise delivered high double-digit growth in the fourth quarter. The company’s newly launched CHT-prepacked Foresight Pro Columns and biological therapeutics and vaccines also generated strong interest in the market.
Further, BioRad entered into an exclusive licensing agreement with NuProbe to accelerate the development of next-generation highly multiplex digital PCR assays for oncology applications. We believe that these developments are likely to have continued through the first quarter, thereby adding to BioRad’s first-quarter revenues.
Per our model, revenues from the Life Science segment indicate a 1% year-over-year decline to $343.6 million in the first quarter.
In 2023, BioRad plans to expand its development pipeline by introducing the QX Continuum and the second-generation single-cell platform. The Continuum represents a next-generation Droplet Digital PCR system with an integrated, cost-effective workflow. The single-cell application targets the large single-cell multiomics market.
Meanwhile, in the fourth quarter, BIO’s Clinical Diagnostics Group’s revenues were unfavorably impacted by supply-chain constraints, which caused a delay in instrument placements across multiple platforms and the adoption of associated consumables. The Covid-19 situation in China negatively affected sales within the Asia-Pacific region, due to the lower volume of routine testing.
Our model projects Clinical Diagnostics revenues of $373.7 million in the first quarter, suggesting a year-over-year increase of 6.2%.
On contrary, the possibilities of further sanctions amid persistent supply-chain constraints impacting instrument placements, continue to exist due to the war situation in Russia and Ukraine. Further, as the severity of the pandemic abates in most countries, the demand for Bio-Rad's pandemic-related products is likely to have taken a hit in the first quarter, thus impacting the company’s top line.
Q1 Estimates
The Zacks Consensus Estimate for BioRad’s first-quarter 2023 revenues is pegged at $674.2 million, suggesting a drop of 3.7% from the year-ago reported figure.
The consensus estimate for its first-quarter 2023 EPS of $3.24 indicates a year-over-year decline of 34.4%.
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 the case here.
Earnings ESP: BioRad has an Earnings ESP of +0.16%. 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 #2.
Other Stocks Worth a Look
Here are some other medical stocks worth considering as these also have the right combination of elements to post an earnings beat this quarter.
Align Technology ALGN has an Earnings ESP of +3.08% and a Zacks Rank #3. The company will release first-quarter 2023 results on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term earnings growth rate of 16%. ALGN has an earnings yield of 2.25% compared with the industry’s 4.61%.
Henry Schein HSIC has an Earnings ESP of +0.99% and a Zacks Rank #2. Henry Schein is expected to release first-quarter 2023 results on May 2.
HSIC has an expected long-term earnings growth rate of 8.10%. The company’s earnings yield of 6.28% compares favorably with the industry’s 4.55%.
Insulet PODD currently has an Earnings ESP of +70.2% and a Zacks Rank #2. Insulet is scheduled to release first-quarter 2023 results on May 4.
Insulet has an expected earnings growth rate of 57.8% for the next year. PODD has an earnings yield of 0.40% compared with the industry’s -3.11%.
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Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report
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