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Dec 31, 2019

Bio-Rad Q4 2019 Earnings Report

Bio-Rad reported an increase in net sales and a significant rise in net income, influenced by a favorable change in the fair market value of equity securities.

Key Takeaways

Bio-Rad Laboratories reported Q4 2019 net sales of $624.4 million, a 1.2% increase year-over-year. Net income for the quarter was $553.5 million, or $18.31 per share, compared to a net loss in Q4 2018. The company experienced a cyberattack during the quarter that impacted sales and operations.

Q4 net sales increased by 1.2% to $624.4 million, or 2.3% on a currency-neutral basis.

Life Science segment sales increased by 1.0% to $242.0 million.

Clinical Diagnostics segment sales increased by 1.6% to $379.0 million.

Net income was $553.5 million, or $18.31 per share, significantly impacted by changes in the fair market value of equity securities.

Total Revenue
$624M
Previous year: $618M
+1.1%
EPS
$2.32
Previous year: $2.13
+8.9%
Gross Margin
52.9%
Previous year: 53.9%
-1.9%
Operating Margin
9.5%
Previous year: -36.8%
-125.8%
Gross Profit
$330M
Previous year: $334M
-1.0%
Cash and Equivalents
$661M
Previous year: $432M
+53.1%
Free Cash Flow
$138M
Previous year: $51.1M
+170.3%
Total Assets
$8.01B
Previous year: $5.61B
+42.7%

Bio-Rad

Bio-Rad

Bio-Rad Revenue by Segment

Forward Guidance

For the full year 2020, Bio-Rad anticipates currency-neutral revenue growth of approximately 4.5 to 5.25 percent and improved profitability with an estimated non-GAAP operating margin of 13.8 to 14.3 percent.

Positive Outlook

  • Expect another year of progress.
  • Driven by a combination of healthy markets.
  • Driven by new products.
  • Focus on operating efficiencies.
  • Continue to pursue goal of 20 percent adjusted EBITDA run rate by the end of the year.

Challenges Ahead

  • Future gains and charges are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance.
  • Foreign currency fluctuations.
  • Future gains or losses associated with certain legal matters.
  • Acquisitions.
  • Restructuring activities.

Revenue & Expenses

Visualization of income flow from segment revenue to net income