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Dec 31, 2023

Bio-Rad Q4 2023 Earnings Report

Bio-Rad's financial performance decreased in Q4 2023, impacted by biopharma market weakness and declining COVID-related sales.

Key Takeaways

Bio-Rad's Q4 2023 results reflect a decrease in total net sales and income from operations compared to Q4 2022, primarily due to the ongoing weakness in biopharma markets and reduced COVID-related sales. While the Clinical Diagnostics segment saw growth, the Life Science segment experienced a decline. The company's net income was significantly impacted by changes in the fair market value of equity securities.

Total net sales decreased by 6.7% to $681.2 million compared to Q4 2022.

Life Science segment sales declined by 19.1%, while Clinical Diagnostics segment sales increased by 5.3%.

Net income was $349.7 million, or $12.14 per share, compared to $827.7 million, or $27.78 per share in Q4 2022, impacted by changes in the fair market value of equity securities.

Non-GAAP net income was $89.3 million, or $3.10 per share, compared to $98.5 million, or $3.31 per share in Q4 2022.

Total Revenue
$681M
Previous year: $730M
-6.7%
EPS
$3.1
Previous year: $3.31
-6.3%
Gross Margin
53.8%
Previous year: 54.4%
-1.1%
Operating Margin
14%
Previous year: 16.2%
-13.6%
Gross Profit
$366M
Previous year: $397M
-7.7%
Cash and Equivalents
$404M
Previous year: $434M
-7.0%
Free Cash Flow
$195M
Previous year: $44.9M
+335.7%
Total Assets
$12.3B
Previous year: $13.5B
-8.9%

Bio-Rad

Bio-Rad

Bio-Rad Revenue by Segment

Forward Guidance

Bio-Rad anticipates non-GAAP, currency-neutral revenue growth of approximately 1.0 to 2.5 percent and an estimated non-GAAP operating margin of approximately 13.5 to 14.0 percent for the full year 2024.

Positive Outlook

  • Ongoing execution of corporate transformation initiatives.
  • Effective expense management.
  • Cautiously optimistic view of a gradual biopharma sector recovery in the second half of the year.
  • Expected non-GAAP, currency-neutral revenue growth of approximately 1.0 to 2.5 percent.
  • Estimated non-GAAP operating margin of approximately 13.5 to 14.0 percent.

Challenges Ahead

  • Reductions in government funding or capital spending of customers.
  • Global economic and geopolitical conditions.
  • Uncertain pace of the biopharma sector’s recovery.
  • Challenging macroeconomic environment in China.
  • Supply chain issues.

Revenue & Expenses

Visualization of income flow from segment revenue to net income