Bio-Rad Laboratories (BIO, Financial), a prominent player in the life sciences sector, recently experienced a downward adjustment in its price target from Citi analyst Patrick Donnelly. The target moved from $400 to $350, although the analyst maintained a Buy rating on the stock. This change follows Bio-Rad's first-quarter earnings report, which surpassed expectations. Despite this, the company's forecast for annual growth was adjusted downward by 225 basis points. This revision is attributed to decreased demand from U.S. academic, government, and biotechnology sectors, with a notable impact on their instrument business. Consequently, the firm's financial model for Bio-Rad has been updated to reflect these developments.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Bio-Rad Laboratories Inc (BIO, Financial) is $349.83 with a high estimate of $409.00 and a low estimate of $270.00. The average target implies an upside of 45.50% from the current price of $240.43. More detailed estimate data can be found on the Bio-Rad Laboratories Inc (BIO) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Bio-Rad Laboratories Inc's (BIO, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bio-Rad Laboratories Inc (BIO, Financial) in one year is $370.82, suggesting a upside of 54.23% from the current price of $240.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bio-Rad Laboratories Inc (BIO) Summary page.
BIO Key Business Developments
Release Date: May 01, 2025
- Net Sales: $585 million, a 4.2% decline from $611 million in Q1 2024.
- Life Science Group Sales: $229 million, a 5.4% decline from $242 million in Q1 2024.
- Clinical Diagnostics Group Sales: $357 million, a 3.2% decline from $369 million in Q1 2024.
- Gross Margin: 52.3%, down from 53.4% in Q1 2024.
- SG&A Expense: $209 million, 35.7% of sales, down from $215 million, 35.2% of sales in Q1 2024.
- R&D Expense: $74 million, 12.6% of sales, up from $66 million, 10.9% of sales in Q1 2024.
- Operating Income: $24 million, 4% of sales, down from $45 million, 7.3% of sales in Q1 2024.
- Net Income: $64 million, $2.29 per diluted share.
- Non-GAAP Net Income: $71 million, $2.54 per diluted share.
- Free Cash Flow: $96 million, up from $30 million in Q1 2024.
- Cash and Short-term Investments: $1.660 billion at the end of Q1 2025.
- Inventory: $790 million, up from $760 million in the prior quarter.
- Share Repurchases: 399,295 shares for $101 million in Q1 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bio-Rad Laboratories Inc (BIO, Financial) exceeded consensus estimates for both revenue and operating margins in Q1 2025.
- The Clinical Diagnostics business performed slightly better than forecast, showing resilience despite macroeconomic challenges.
- The bioproduction business, particularly process chromatography, experienced positive momentum with mid-teens year-over-year growth.
- Innovative product launches, such as a new PCR-based salmonella test and advancements in DDPCR assays, highlight the company's commitment to innovation.
- The acquisition of Stilla Technology is on track, expected to enhance Bio-Rad's digital PCR offerings and expand its market presence.
Negative Points
- Net sales for Q1 2025 declined by 4.2% on a reported basis compared to Q1 2024, primarily due to lower sales in the Life Science Group.
- The Life Science segment faced softness in academia and biopharma research, particularly in the Americas, impacting overall revenue.
- Gross margin decreased to 52.3% from 53.4% in Q1 2024, driven by restructuring expenses related to workforce reduction.
- The company is facing significant tariff impacts, particularly on US-manufactured products imported into China, affecting operating margins.
- Bio-Rad Laboratories Inc (BIO) adjusted its 2025 guidance to reflect softer academic research funding and macroeconomic uncertainties, indicating potential challenges ahead.
