Bio-Rad Earnings: First-Quarter Declines in Line With Expectations; Shares Undervalued

Wide-moat Bio-Rad’s first-quarter earnings were in line with expectations. Revenue for the period was $611 million, or a 10% year-over-year decline, while adjusted operating profit margin of 9.7% fell 2.7 percentage points from the same period last year. We maintain our fair value estimate of $430 per share and view shares as undervalued. Although we expect 2024 to be lackluster in terms of revenue growth and margin improvement, next year we think Bio-Rad can resume its progress in increasing operating profit margins.