Bio-Rad Earnings: In-Line Results, Guidance Slightly Below Expectations, Shares Undervalued

Wide-moat Bio-Rad reported fourth-quarter results that were in line with expectations. Although guidance for next year was slightly below our expectations for non-GAAP operating margin, the company still expects to return to positive revenue growth in 2025 and improve margin by about 60 basis points at the midpoint. We lower our fair value estimate to $400 per share from $430 to incorporate slightly more conservative profit margins and a lower valuation of the firm’s holdings of Sartorius. We continue to view Bio-Rad shares as undervalued.