Bio-Rad (BIO) to Report Q3 Earnings: What's in the Cards?
Bio-Rad Laboratories, Inc. BIO is expected to report third-quarter 2022 results shortly.
In the last reported quarter, the company’s earnings per share (EPS) of $3.38 surpassed the Zacks Consensus Estimate by 37.4%. Moreover, earnings beat the consensus estimate in each of the last four quarters. The trailing four-quarter average surprise is 46.75%.
Let's see how things are shaping up prior to the announcement.
Factors at Play
Bio-Rad’s Life Science segment has been registering robust revenue growth over the past few quarters. We expect this growth momentum to have continued in the third quarter on the back of sustained sales gains in terms of the company’s process media, western blotting, Droplet Digital PCR and qPCR products. The company has been witnessing strong growth in the biopharma market for the Droplet Digital PCR platform, which is expected to have made significant contributions to the third-quarter top line.
However, due to the Russia-Ukraine war situation,supply chain constraints have been impacting instrument placements. As a result of these constraints as well as the global inflationary situation, we expect the company’s Life science business to have experienced a year-over-year decline in revenues.
BioRad Laboratories, Inc. Price and EPS Surprise
BioRad Laboratories, Inc. price-eps-surprise | BioRad Laboratories, Inc. Quote
Further, a decline in the number of COVID-19 cases across many countries compared to the year-ago period is likely to have hit demand for Bio-Rad's COVID-related products, including molecular qPCR and ddPCR instruments and assays, antibody tests and quality controls, thus impacting the company’s top line.
Per our model, Bio-Rad is expected to report a 3.2% year-over-year drop in Life Science revenues in Q3.
Bio-Rad earlier noted that it expects to see accelerated growth within the Clinical Diagnostics segment in 2022, driven by its continued focus on laboratory workflow productivity, quality control value proposition, and new opportunities in molecular diagnostics. This uptrend was reflected in the second quarter, which was influenced by strong business generation within blood-typing, quality control and clinical immunology. We expect this trend to have continued through the third quarter on the back of the continued opening of the economy.
Our model projects 4.5% year-over-year improvement in Clinical Diagnostics revenues in Q3.
Estimate Picture
The Zacks Consensus Estimate for Bio-Rad’s third-quarter revenues is pegged at $690.1 million, which implies a decline of 7.6% from the year-ago figure.
The consensus estimate for earnings per share is pegged at $2.59, suggesting a fall of 30.2% from the prior-year reported figure.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Bio-Rad has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks Worth a Look
Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.
Charles River Laboratories International CRL has an Earnings ESP of +0.66% and a Zacks Rank of #3. The company will release third-quarter 2022 results on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Charles River has a long-term historical earnings growth rate of 17.7%. Charles River’s earnings yield of 5.47% compares favorably with the industry’s -2.84%.
McKesson MCK has an Earnings ESP of +0.27% and a Zacks Rank of #2. McKesson is scheduled to release third-quarter 2022 results on Nov 1.
McKesson’s long-term historical earnings growth rate is estimated at 14.2%. MCK’s earnings yield of 6.94% compares favorably with the industry’s 5.22%.
Humana HUM currently has an Earnings ESP of +0.76% and a Zacks Rank of #1. Humana is slated to release third-quarter 2022 results on Nov 2.
Humana’s long-term historical earnings growth rate is estimated at 16.2%. HUM’s earnings yield of 5.02% compares favorably with the industry’s 5.00%.
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