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Sep 30, 2024
Bio-Rad Q3 2024 Earnings Report
Bio-Rad's third-quarter performance in 2024 was marked by revenue growth and a substantial net income increase, driven by strong clinical diagnostics sales and a change in the fair market value of its investment in Sartorius AG.
Key Takeaways
Bio-Rad Laboratories reported a 2.8% increase in total net sales for Q3 2024, reaching $649.7 million. The company's net income significantly increased to $653.2 million, or $23.34 per share, driven by a change in the fair market value of its investment in Sartorius AG. Clinical Diagnostics segment sales increased, offsetting a slight decrease in Life Science segment sales.
Total net sales increased by 2.8% to $649.7 million compared to Q3 2023.
Net income rose to $653.2 million, or $23.34 per share, primarily due to a change in the fair market value of investment in Sartorius AG.
Clinical Diagnostics segment net sales increased by 5.6%, driven by increased demand for quality control products.
Life Science segment net sales decreased by 1.0%, impacted by weakness in biotech and biopharma end markets.
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 continues to expect its non-GAAP revenue to decline by approximately 2.5 to 4.0 percent on a currency-neutral basis. The company estimates a non-GAAP operating margin of between 12.75 to 13.25 percent, which now also includes the impact of a one-time acquired in-process research and development expense related to an acquisition completed during the third quarter.
Positive Outlook
- The company expects non-GAAP revenue decline to be between 2.5% and 4.0% on a currency-neutral basis.
- The company estimates a non-GAAP operating margin of between 12.75% to 13.25%.
- The non-GAAP operating margin estimate includes the impact of a one-time acquired in-process research and development expense.
- The company is focused on margin expansion.
- The company is focused on commercial excellence.
Challenges Ahead
- The revenue is expected to decline.
- The non-GAAP operating margin forecast excludes 85 basis points related to amortization of purchased intangibles.
- The non-GAAP operating margin does not reflect future gains and charges that are inherently difficult to predict.
- Future gains or losses associated with certain legal matters are not reflected in the guidance.
- Impacts of acquisitions and restructuring activities are not reflected in the guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income