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Sep 30, 2020

Bio-Rad Q3 2020 Earnings Report

Reported a 15.5% increase in net sales, driven by strong performance in the Life Science segment, which was partially offset by a decrease in the Clinical Diagnostics segment due to the COVID-19 pandemic.

Key Takeaways

Bio-Rad Laboratories reported a strong third quarter with a 15.5% increase in net sales to $647.3 million. The Life Science segment saw significant growth driven by PCR product lines, while the Clinical Diagnostics segment experienced a decline. Net income was $1,314.8 million, or $43.64 per share, compared to a net loss in the same period last year.

Third-quarter net sales increased by 15.5% to $647.3 million compared to Q3 2019.

Life Science segment sales increased by 50.2%, driven by COVID-19 related demand for PCR product lines.

Clinical Diagnostics segment sales decreased by 5.7% due to lower demand resulting from the COVID-19 pandemic.

Net income for the quarter was $1,314.8 million, or $43.64 per share.

Total Revenue
$647M
Previous year: $561M
+15.5%
EPS
$3
Previous year: $1.61
+86.3%
Gross Margin
56.7%
Previous year: 54.8%
+3.5%
Operating Margin
16.9%
Previous year: 10.2%
+65.7%
Gross Profit
$367M
Previous year: $307M
+19.6%
Cash and Equivalents
$840M
Previous year: $561M
+49.8%
Free Cash Flow
$116M
Previous year: $68.7M
+68.5%
Total Assets
$12B
Previous year: $7.18B
+67.5%

Bio-Rad

Bio-Rad

Bio-Rad Revenue by Segment

Forward Guidance

Bio-Rad expects full-year 2020 currency-neutral sales to be up 5.9% to 6.3% with a non-GAAP operating margin of 16.0% to 16.5%.

Positive Outlook

  • Full-year 2020 currency-neutral sales may be up 5.9 to 6.3 percent
  • Expects to generate significantly higher operating profit over 2019
  • Remain focused on our core strategies
  • Contributions in response to the pandemic
  • Expect a gradual improvement in our end-markets

Challenges Ahead

  • COVID-19 situation is still unpredictable
  • Duration, severity and impact of the COVID-19 pandemic
  • Global economic conditions
  • Foreign currency exchange fluctuations
  • Supply chain issues

Revenue & Expenses

Visualization of income flow from segment revenue to net income