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Jun 30, 2024
Bio-Rad Q2 2024 Earnings Report
Bio-Rad's second-quarter results were announced, revealing a decrease in total net sales but an increase in gross margin and operating income.
Key Takeaways
Bio-Rad Laboratories reported second-quarter 2024 results with total net sales of $638.5 million, a decrease of 6.3% compared to the previous year. Despite revenue decline, the gross margin increased to 55.6% and operating income rose to $101.5 million. The company experienced a significant net loss of $2,165.5 million due to a change in the fair market value of its investment in Sartorius AG.
Total net sales decreased by 6.3% year-over-year to $638.5 million.
Life Science segment sales declined by 16.5%, driven by weakness in biotech and biopharma markets.
Clinical Diagnostics segment sales increased by 2.1%, supported by demand for quality control and blood typing products.
Gross margin improved to 55.6%, and operating income increased to $101.5 million.
Bio-Rad
Bio-Rad
Bio-Rad Revenue by Segment
Revenue by Segment
Life Science Revenue
CapyFin.comClinical Diagnostics Revenue
CapyFin.com Forward Guidance
Bio-Rad is updating its financial outlook for the full year 2024, expecting non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis and estimating a non-GAAP operating margin of about 12.0 to 13.0 percent.
Positive Outlook
- Ongoing supply chain initiatives are positively impacting the margin profile.
- Core process improvements are positively impacting the margin profile.
- Cost control is positively impacting the margin profile.
- The company is well positioned for further margin expansion as the life science business rebounds.
- Share repurchase program authorization increased to $500 million.
Challenges Ahead
- Non-GAAP revenue is expected to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis.
- Non-GAAP operating margin is estimated to be about 12.0 to 13.0 percent.
- Constraints in biotech and biopharma customer spending are expected to continue.
- A more modest pace of market recovery is expected than originally anticipated.
- Challenging macroeconomic environment in China.
Revenue & Expenses
Visualization of income flow from segment revenue to net income