Bio-Rad Laboratories, Inc. BIO posted first-quarter 2025 adjusted earnings per share (EPS) of $2.54, which surpassed the Zacks Consensus Estimate of $1.73 by 46.8%. The bottom line increased 10.9% from the prior-year quarter’s level.

The quarter’s adjustments primarily eliminate the impacts of certain non-recurring items, such as the amortization of purchased intangibles, restructuring costs and losses from the change in the fair market value of equity securities.

The company’s GAAP EPS was $2.29 compared with $13.45 a year ago.

Following the earnings announcement, BIO stock rose 0.2% in yesterday’s after-market trading.

BIO's Q1 Revenues

Revenues of $585.4 million missed the Zacks Consensus Estimate by 0.05%. The figure also decreased 4.2% year over year (down 1.5% at constant exchange rate or CER). (See the Zacks Earnings Calendar to stay ahead of market-making news.)

BIO's Segmental Analysis

Sales in the Life Science segment totaled $228.6 million, down 5.4% year over year and 3.5% at CER. The currency-neutral year-over-year sales decline was primarily due to the ongoing challenges in the academic research market.

Net sales in the Clinical Diagnostics segment were $356.8 million, down 3.2% on a year-over-year basis and 0.1% at CER. The currency-neutral year-over-year sales decrease was primarily due to lowered reimbursements for diabetes testing in China.

Margins

In the quarter under review, Bio-Rad’s gross profit declined 6.1% to $306 million. The gross margin contracted 108 basis points (bps) to 52.3%.

Operating expenses amounted to $282.3 million, up 0.3% year over year. Operating profit totaled $23.7 million, down 46.9% from the prior-year level. The operating margin contracted 325 bps to 4%.

BIO's Financial Update

Bio-Rad exited the first quarter of 2025 with cash and cash equivalents (including short-term investments) of $1.66 billion, which remained flat sequentially. Total debt (including current maturities) at the end of 2024 was $1.20 billion, which also remained flat on a sequential basis.

Net cash flow from operating activities totaled $129.9 million compared with the year-ago figure of $69.8 million.

Updated 2025 Guidance

Bio-Rad lowered its financial guidance for full-year 2025.

The company now anticipates non-GAAP currency-neutral revenues to range from 1.0% decline to 1.5% growth (down from the prior guidance of 1.5-3.5% growth). The Zacks Consensus Estimate for revenues is pegged at $2.58 billion, implying a 0.6% increase from the 2024 reported figure.

Bio-Rad Laboratories, Inc. Price, Consensus and EPS SurpriseBio-Rad Laboratories, Inc. Price, Consensus and EPS Surprise

Bio-Rad Laboratories, Inc. price-consensus-eps-surprise-chart | Bio-Rad Laboratories, Inc. Quote

Story Continues

The adjusted operating margin for the full year is projected to be in the range of 10-12% (down from the prior guidance of 13.0-13.5%).

Our Take

Bio-Rad exited the first quarter on a mixed note, with earnings beating estimates and revenues missing the same. The currency-neutral year-over-year sales decrease was primarily due to lower sales in the Life Science group.

The Life Science group sales decline reflected ongoing softness in the biotech and academic research market, particularly in regions like America and Asia-Pacific. Within the Clinical Diagnostics segment, the company experienced increased demand for quality control products, which was offset by lower diabetes testing revenues.

The contraction of both margins is discouraging. Additionally, Bio-Rad’s lowered financial guidance for 2025 adds to the worry.

Zacks Rank & Key Picks

BIO currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are AngioDynamics ANGO, Veeva Systems VEEV and Masimo MASI.

AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported third-quarter fiscal 2025 adjusted EPS of 3 cents, which beat the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.

Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 70.9%.

Veeva Systems, sporting a Zacks Rank #1 at present, posted fourth-quarter fiscal 2025 adjusted EPS of $1.75, which exceeded the Zacks Consensus Estimate by 10.1%. Revenues of $720.9 million surpassed the Zacks Consensus Estimate by 3.2%.

VEEV has an estimated long-term earnings growth rate of 26.6% compared with the industry’s 20.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.9%.

Masimo, currently sporting a Zacks Rank #1, reported a fourth-quarter 2024 adjusted EPS of $1.80, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $600.7 million topped the Zacks Consensus Estimate by 0.8%.

MASI has an estimated earnings yield of 3.5% for fiscal 2025 compared with the industry’s 3.6%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.4%.

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