Bio-Rad Laboratories (BIO) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales rose 2.8% year-over-year to $650 million, led by Clinical Diagnostics growth, while Life Science sales declined due to ongoing biopharma market weakness.

• GAAP net income surged to $653.2 million ($23.34/share), primarily due to a $793 million gain from Sartorius AG investment; non-GAAP net income was $56 million ($2.01/share), down year-over-year.

• Gross margin improved to 54.8% (GAAP) and 55.6% (non-GAAP), reflecting cost control and favorable product mix.

• Clinical Diagnostics business delivered broad-based growth, especially in Asia-Pacific, with strong demand for quality control and immunology products.

• Completed the acquisition of Saber Bio, recognized a $29.5 million in-process R&D expense, and made an additional equity investment in Oncocyte.

Financial highlights

• Q3 2024 net sales: $650 million (+2.8% year-over-year); Clinical Diagnostics up 5.6% to $389 million, Life Science flat at $261 million.

• Q3 2024 GAAP net income: $653 million; non-GAAP net income: $56 million; GAAP EPS: $23.34; non-GAAP EPS: $2.01.

• Q3 2024 GAAP gross margin: 54.8%; non-GAAP: 55.6%.

• Q3 2024 operating income: $64 million (9.9% margin); non-GAAP operating margin: 11.3%.

• Free cash flow for Q3 was $123 million, up from $54 million a year ago; operating cash flow for nine months: $331 million.

Outlook and guidance

• Full-year 2024 revenue expected to decline 2.5%-4% currency-neutral; non-GAAP operating margin forecasted at 12.75%-13.25%.

• Raised full-year non-GAAP gross margin guidance to 55%-55.5%; adjusted EBITDA margin expected at 18.5%-19%.

• Free cash flow for 2024 expected to be ~$300 million, with continued focus into 2025.

• Process chromatography expected to return to growth in 2025 as destocking abates.

• Management anticipates continued headwinds in biopharma and small biotech markets through 2025.