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Jun 30, 2023
Bio-Rad Q2 2023 Earnings Report
Bio-Rad's financial performance declined slightly compared to the previous year, with net sales decreasing by 1.4 percent, although currency-neutral sales decreased by only 0.3 percent. The company's Life Science segment experienced a decrease in net sales, while the Clinical Diagnostics segment saw an increase. Despite these mixed results, Bio-Rad is updating its financial outlook for the full year 2023.
Key Takeaways
Bio-Rad Laboratories reported a slight decrease in net sales for the second quarter of 2023, with a decline of 1.4 percent compared to the same period in 2022. The Life Science segment experienced a decrease in sales, while the Clinical Diagnostics segment saw an increase. The company is updating its financial outlook for the full year 2023, expecting non-GAAP currency-neutral revenue growth of approximately 0.8 percent.
Second-quarter net sales were $681.1 million, a decrease of 1.4 percent compared to $691.1 million in 2022.
Life Science segment net sales decreased by 6.9 percent, while Clinical Diagnostics segment net sales increased by 3.3 percent.
Second-quarter gross margin was 53.2 percent compared to 57.2 percent in 2022.
Net loss for the second quarter was $1,162.3 million, or $39.59 per share, compared to a net loss of $925.1 million, or $31.05 per share, in 2022.
Revenue by Segment
Forward Guidance
Bio-Rad is updating its financial outlook for full-year 2023. The company currently expects non-GAAP currency-neutral revenue growth of approximately 0.8 percent in 2023 compared to its previous estimate of 4.5 percent and an estimated non-GAAP operating margin of about 16.0 percent versus the company’s prior estimate of approximately 17.5 percent. Excluding COVID-related sales, Bio-Rad estimates full-year 2023 non-GAAP currency-neutral revenue growth to be about 4.5 percent compared to its prior expectation of approximately 8.5 percent.
Positive Outlook
- Believing market dynamics relating to the early-stage biotech market and larger biopharma customers are transitory
- Remaining confident in our long-term growth outlook
- Currently expecting non-GAAP currency-neutral revenue growth of approximately 0.8 percent
- Estimated non-GAAP operating margin of about 16.0 percent
- Excluding COVID-related sales, estimating non-GAAP currency-neutral revenue growth to be about 4.5 percent
Challenges Ahead
- Impact of the COVID-19 pandemic
- Supply chain issues
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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