Bio-Rad Laboratories, Inc. BIO has been witnessing strength in international markets. Further, strong key product lines across major geographic regions buoy optimism. The stock currently carries a Zacks Rank #2 (Buy).
Over the past year, Bio-Rad has outperformed its industry. The stock has gained 21.7% compared with the industry’s 5.2% rise.
Bio-Rad exited the third quarter of 2021 with better-than-expected results. The company witnessed solid top-and bottom-line growth in the reported quarter. An increase in demand for Droplet Digital PCR products along with core qPCR business growth, driven by strong uptake of the latest generation CFX Opus platform, is encouraging. The uptick in the Clinical Diagnostics arm, driven by higher utilization in lab operations as businesses recover from the COVID-19 pandemic, is encouraging as well. The raised 2021 revenue guidance is indicative of the continuation of this bullish trend.
BioRad Laboratories, Inc. Price
BioRad Laboratories, Inc. price | BioRad Laboratories, Inc. Quote
Further, strength in its key product lines across major geographic regions buoys optimism. In recent times, Bio-Rad has been deriving more than 60% of its net sales from international markets. Europe happens to be the largest international market for the company. Geographically, the company registered quarterly growth at CER across the Americas and Asia. In the Life Science business, all regions witnessed growth compared to the year-ago quarter.
Further, Bio-Rad’s Clinical Diagnostics segment registered double-digit growth across all its product lines, driven by a recovery in routine testing. In June 2021, Bio-Rad teamed up with Seegene -- a global provider of multiplex molecular diagnostics. Bio-Rad will exclusively market the Seegene tests in the United States, pending regulatory approvals. The company also noted the gradual capacity improvement at both academic and diagnostic labs.
On the flip side, during the third quarter, Bio-Rad’s operating expenses rose 8.9% year over year. The year-over-year rise in operating costs is building pressure on the bottom line. Moreover, BIO’s underlying Life Science business declined 2% on a currency-neutral basis due to lower COVID-related sales.
Bio-Rad has been involved in a multi-year implementation of a new global enterprise resource planning (ERP) system. Any shortfall in the design or implementation of ERP might have a detrimental impact on the company’s abilities to process and dispatch orders, send invoices and track payments, meet contractual obligations or maintain normal business operations.
Further, foreign-exchange woes, stiff competition and pandemic-led macroeconomic troubles persist.
Other Key Picks
Some other top-ranked stocks from the broader medical space are Chemed Corporation CHE, Laboratory Corporation of America Holdings, or LabCorp LH and Medpace Holdings, Inc. MEDP.
Chemed has a long-term earnings growth rate of 7.7%. The company surpassed earnings estimates in three of the trailing four quarters and missed in one, delivering a surprise of 5.6%, on average. Chemed currently carries a Zacks Rank #2.
Chemed has outperformed its industry over the past year. CHE has gained 3.7% against a 35.6% decline of the industry.
LabCorp reported third-quarter 2021 adjusted earnings per share (EPS) of $6.82, which surpassed the Zacks Consensus Estimate by 42.9%. Revenues of $4.06 billion outpaced the Zacks Consensus Estimate by 13.4%. LabCorp currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LabCorp has an estimated long-term growth rate of 10.6%. LH surpassed estimates in the trailing four quarters, the average surprise being 25.7%.
Medpace reported third-quarter 2021 adjusted EPS of $1.29, surpassing the Zacks Consensus Estimate by 20.6%. Revenues of $295.57 million beat the Zacks Consensus Estimate by 1.2%. Medpace currently carries a Zacks Rank #1.
Medpace has an estimated long-term growth rate of 16.4%. MEDP surpassed estimates in the trailing four quarters, the average surprise being 11.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Laboratory Corporation of America Holdings (LH) : Free Stock Analysis Report
BioRad Laboratories, Inc. (BIO) : Free Stock Analysis Report
Chemed Corporation (CHE) : Free Stock Analysis Report
Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research