However, decline in the company’s Clinical Diagnostics revenues is concerning. Provision of the company’s full-year outlook looks encouraging. Expansion of the company’s gross margin is encouraging as well. This strengthens the company’s global response and contribution to the fight against the pandemic, raising optimism on the stock.
Notably, Bio-Rad launched two new PCR systems - the CFX Opus 96 and the CFX Opus 384 - last month. Continued momentum of the Droplet Digital PCR business looks encouraging. The uptick in core PCR and Droplet Digital PCR product revenues resulted from robust demand due to COVID-19 testing and related research. Further, strength in many of its key product lines across major geographic regions buoys optimism. Despite the negative impact of the pandemic, its Life Sciences segment registered growth on robust sale of products associated with the pandemic, thus providing some counterbalance. The company witnessed solid bottom-line growth in the quarter. Our Takeīio-Rad exited the third quarter of 2020 with better-than-expected results. The company assumes that the fourth quarter will see a gradual improvement in non-COVID-19-related product sales and a smaller relative benefit of COVID-19-related product sales versus the third quarter. Further, the Life Science segment is expected to grow by 27-28% at CER whereas the Clinical Diagnostics segment is likely to fall by 7% at CER for the year. 2020 GuidanceĪlthough Bio-Rad continues to be uncertain about the duration and impact of the pandemic, the company expects a gradual return to pre-pandemic activity levels and business mix.īio-Rad expects full-year sales to be up 5.9-6.3% at CER year over year. Long-term debt (including current maturities) at the end of the third quarter was $438.9 million compared with $438.7 million.Ĭumulative net cash flow from operating activities at the end of the quarter under review was $290.6 million compared with $298.1 million at the year-ago quarter’s end. Financial Updateīio-Rad exited the third quarter with cash and cash equivalents (including short-term investments) of $1.16 billion compared with $1.04 billion at the end of the second quarter of 2020. Further, operating margin in the third quarter expanded 668 bps to 16.9%.Ĭompany-adjusted operating margin was 18.8%, expanding 680 bps year over year. Operating profit totaled $109.6 million, reflecting a 90.7% upsurge from the prior-year quarter. Operating expenses were $257.7 million in the third quarter, up 3.3% year over year. The downside at CER was driven by lower demand due to the pandemic and was across most product lines as well as all regions.
Net sales at the Clinical Diagnostics segment totaled $322.2 million, down 5.7% on a year-over-year basis and 5.9% at CER. Geographically, the company’s quarterly growth at CER was experienced by all regions. The growth at CER was primarily driven by sales of Polymerase Chain Reaction (“PCR”) and Droplet Digital PCR and Process Media products. Sales at the Life Science segment in the second quarter totaled $324 million, up 50.2% year over year and 48.8% at CER.
Further, along with strong demand for products associated with COVID-19 testing and related research, lower demand in the rest of the business was also observed during the quarter. Per the company, an increased activity and lab utilization across its customers was registered across the globe. Moreover, revenues improved 15.5% from the year-ago quarter (up 14.9% at constant exchange rate or CER). Bio-Rad’s revenues of $647.3 million in the quarter surpassed the Zacks Consensus Estimate by 14.5%.
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