Bio-Rad reported a second-quarter revenue decline of 1.9% year on year at constant currency, and non-GAAP operating margin fell 1.1 points to 12.5%. Management reiterated full-year guidance ranges for currency-neutral revenue change of negative 3.0% to 0.5% and non-GAAP operating margin of 10%-12%.
BIO is trading within a range we consider fairly valued.
Price
$356.26
Fair Value
LOCK|m>
Uncertainty
LOCK|&X
1-Star Price
LOCK|Fp
5-Star Price
%p^
Economic Moat
LOCK|c>>
Capital Allocation
LOCK|@!k#c@K
Bulls Say, Bears Say
Bulls
Bio-Rad is a leader in niche areas including quality controls, antigens, and digital PCR, and it has a strong razor-and-blade model in clinical diagnostics.
Bears
Bio-Rad’s life science business currently faces a challenging environment due to funding cuts for US life sciences research and the potential for a weakening biotech funding environment.
Bio-Rad Laboratories, headquartered in Hercules, California, develops, manufactures, and sells products and solutions for the clinical diagnostics and life sciences markets. In clinical diagnostics (60% of sales), Bio-Rad sells test systems and specialized quality controls for clinical laboratories. In life sciences (40% of sales), it develops and manufactures instruments and reagents used in research, biopharmaceutical production, and food testing and has a leadership position in dPCR technology. The company is geographically diverse, with major markets in the Americas (about 40% of sales), Europe (about 30%), Asia (about 30%), and other. Bio-Rad owns approximately 33% of Sartorius, a lab and bioprocessing supplier that specializes in single-use technology used in biologics manufacturing.