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Dec 31, 2020

Bio-Rad Q4 2020 Earnings Report

Bio-Rad's Q4 2020 financial results were announced, showing significant revenue growth driven by COVID-19 related products and a damages award.

Key Takeaways

Bio-Rad reported a strong Q4 2020 with a 26.5% increase in net sales compared to Q4 2019. The growth was largely driven by high demand for COVID-19 related products and a damages award. The company's Life Science segment experienced substantial growth, while the Clinical Diagnostics segment saw a decrease in sales.

Net sales increased by 26.5% compared to Q4 2019, reaching $789.8 million.

Life Science segment net sales increased by 77.1%, driven by COVID-19 related products.

Clinical Diagnostics segment net sales decreased by 5.1% due to lower demand from the COVID-19 pandemic.

Net income for the quarter was $839.1 million, or $27.81 per share, on a diluted basis.

Total Revenue
$790M
Previous year: $624M
+26.5%
EPS
$4.01
Previous year: $2.32
+72.8%
Gross Margin
58.3%
Previous year: 52.9%
+10.2%
Operating Margin
22.2%
Previous year: 9.5%
+133.7%
Gross Profit
$460M
Previous year: $330M
+39.3%
Cash and Equivalents
$662M
Previous year: $661M
+0.2%
Free Cash Flow
$245M
Previous year: $138M
+77.6%
Total Assets
$13B
Previous year: $8.01B
+62.0%

Bio-Rad

Bio-Rad

Bio-Rad Revenue by Segment

Forward Guidance

For the full year 2021, the company anticipates non-GAAP currency-neutral revenue growth of approximately 4.5 to 5.0 percent and an estimated non-GAAP operating margin of approximately 16.0 to 16.5 percent.

Positive Outlook

  • Anticipates another year of progress in 2021
  • Building on the operating efficiencies achieved this year
  • Expects the pandemic to continue well into 2021
  • Expects a gradual recovery in end markets as the year progresses
  • Anticipates non-GAAP currency-neutral revenue growth of approximately 4.5 to 5.0 percent

Challenges Ahead

  • Pandemic to continue well into 2021
  • Non-GAAP operating margin excludes 105 basis points related to amortization of purchased intangibles
  • Forecasted non-GAAP operating margin does not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance
  • Such as foreign currency fluctuations
  • Future gains or losses associated with certain legal matters, acquisitions and restructuring activities

Revenue & Expenses

Visualization of income flow from segment revenue to net income