Bio-Rad Laboratories, Inc.
), a worldwide provider of life science research and clinical
diagnostic products, reported adjusted third quarter 2013
earnings of 56 cents, lagging the Zacks Consensus Estimate of
earnings of 66 cents.
The company reported loss of 25 cents in the reported quarter,
significantly short of the year-ago earnings of $1.49 per share.
Following the announcement on Nov 7, stock price of Bio-Rad
declined 0.40% to $121.14 per share on Nov 11.
Revenues in Detail
Revenues were $505.1 million in the reported quarter, improving
1.2% on a year-over-year basis (up 1.8% at Constant Exchange Rate
or CER). Revenues included $5.5 million of sales from the
company's acquisition of AbD Serotec in Jan 2013.
However, the figure missed the Zacks Consensus Estimate of $521
Segments in Detail
Net revenue from the Life Science segment were $162.9 million,
down 2.5% year over year (down1.2% at CER). Sales of antibodies
and reagents from the acquisition of AbD Serotec had a positive
impact on the segment. However, sluggish growth persisted in the
research spending environment.
In the Clinical Diagnostics segment, revenues increased 3.2% to
$338.8 million. Growth in this segment was mainly driven by sales
across all product lines like quality controls, diabetes and
Robust performance across the company's product range,
including diabetes propelled segmental growth. Strong sales in
China and Latin American markets were partially offset by
weakness in the Western Europe.
Gross profit increased 3.8% year over year to $284.2 million,
leading to a 140 basis points (bps) expansion in gross margin.
The upside reflects a favorable product mix and increased
manufacturing utilization, dragging down the overall revenue from
On the other hand, operating expenses rose 22.7% year over year
to $255.6 million. The escalation was driven by higher research
and development (up 10.7% to $52.9 million) and selling, general
and administrative expenses (up 26% to $202.2 million).
The company ended the quarter with cash, cash equivalents and
short term investments of $561.8 million as on Sep 30, 2013, as
compared to $921 million as on Dec 31, 2012.
Following the performance in the third quarter, the company
reiterated its guidance for 2013. It expects a growth of 2% in
the base business and 3.1%, including the Serotec acquisition.
Considering the challenges in the European market and constraints
in the funding environment, revenue growth in 2013 is likely to
remain in the range of 2% to 3%.
Currently the stock carries a Zacks Rank # 3 (Hold). Other
stocks that are worth a look include
INSYS Therapeutics, Inc.
Hill-Rom Holdings, Inc.
) each sporting a Zacks Rank #1 (Strong Buy).
BIO-RAD LABS -A (BIO): Free Stock Analysis
HILL-ROM HLDGS (HRC): Free Stock Analysis
INSYS THERAP (INSY): Free Stock Analysis
NUVASIVE INC (NUVA): Free Stock Analysis
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