Bio-Rad Laboratories, Inc. Announces Third-Quarter Financial Results
Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B), a prominent player in life science research and clinical diagnostics, recently reported its financial results for the third quarter ended September 30, 2024.
Sales Growth and Segment Performance
In the third quarter of 2024, Bio-Rad achieved total net sales of $649.7 million, which reflects a 2.8 percent increase from the $632.1 million recorded in the same quarter of 2023. Notably, when excluding currency fluctuations, sales grew by 3.4 percent year-over-year, driven primarily by the Clinical Diagnostics segment.
Life Science Segment Analysis
The Life Science segment's net sales for the third quarter reached $260.9 million, showing a slight decline of 1.0 percent compared to the previous year. This decrease can be attributed to ongoing challenges in the biotech and biopharma markets. Despite this, sales performance was somewhat cushioned due to an uptick in the EMEA region.
Clinical Diagnostics Segment Insights
Conversely, the Clinical Diagnostics segment reported a robust sales increase, achieving $388.8 million, up 5.6 percent year-over-year. On a currency-neutral basis, this segment saw a 6.4 percent growth, fueled by heightened demand for quality control products and a favorable recovery from previous supply constraints impacting immunology products.
Financial Margins and Income Overview
Bio-Rad's gross margin for the latest quarter stood at 54.8 percent, improving from 53.1 percent in Q3 2023. However, the income from operations declined to $64.5 million from $90.9 million the previous year, reflecting the competitive pressures and operational costs the company faces.
During the quarter, the adjustment to the fair market value of the investment in Sartorius AG was recognized, resulting in a significant net income of $653.2 million, or $23.34 per share on a diluted basis. This figure is a substantial increase compared to the prior year’s $106.3 million, or $3.64 per share.
Effective Tax Rate and Leadership Changes
The effective tax rate for the third quarter was reported at 24.2 percent, a slight increase from 22.5 percent in the same period last year, largely influenced by the accounting treatments related to equity securities.
On the corporate front, Bio-Rad welcomed Jon DiVincenzo as the new President and Chief Operating Officer. DiVincenzo joins a revitalized senior leadership team, which aims to bolster margin expansion and drive commercial excellence moving forward.
Updated Financial Expectations for 2024
Looking forward, Bio-Rad continues to anticipate a non-GAAP revenue decline of approximately 2.5 to 4.0 percent on a currency-neutral basis and projects a non-GAAP operating margin within the range of 12.75 to 13.25 percent. This outlook includes the financial impact of recent acquisitions.
Conference Call and Financial Reporting
The management team will discuss the Q3 2024 results and the financial outlook in an upcoming conference call scheduled for 2 PM Pacific Time. Interested parties can participate by calling the designated numbers shared in their investor relations communication.
Frequently Asked Questions
What were Bio-Rad's total net sales in Q3 2024?
Bio-Rad reported total net sales of $649.7 million for the third quarter of 2024.
How did the Clinical Diagnostics segment perform in Q3 2024?
The Clinical Diagnostics segment saw sales of $388.8 million, an increase of 5.6 percent compared to Q3 2023.
What is Bio-Rad’s outlook for 2024?
Bio-Rad anticipates a non-GAAP revenue decline of 2.5 to 4.0 percent on a currency-neutral basis for the full-year 2024.
Who is the new President and COO of Bio-Rad?
Jon DiVincenzo has been appointed as the new President and Chief Operating Officer of Bio-Rad.
What was Bio-Rad's gross margin in Q3 2024?
Bio-Rad's gross margin for the third quarter of 2024 was reported at 54.8 percent.
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