Bio-Rad Laboratories (BIO) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $681.2M, down 6.7% reported and 7.7% currency-neutral YoY; full-year revenue was $2,671.3M, down 4.7% reported and 4.1% currency-neutral.

• Weak biopharma markets weighed on Life Science results; Clinical Diagnostics grew, supported by demand for diabetes and quality control products.

• 2024 guidance calls for non-GAAP currency-neutral revenue growth of 1.0%–2.5% and a non-GAAP operating margin of 13.5%–14.0%.

Financial highlights

• Q4 GAAP operating income was $95.3M vs. $118.7M; gross margin was 53.8% vs. 54.4% YoY.

• Q4 non-GAAP operating income was $105.2M vs. $127.0M; non-GAAP gross margin was 54.4% vs. 54.9% YoY.

• FY 2023 GAAP operating income was $337.8M vs. $482.6M; gross margin was 53.4% vs. 55.9% in 2022.

• FY non-GAAP operating income was $378.9M vs. $524.0M; non-GAAP net income was $345.2M, or $11.78 diluted EPS, vs. $432.6M and $14.42.

• COVID-related sales were ~$0.3M in Q4 vs. ~$13.4M; FY sales were ~$4M vs. $109M, with FY revenue down 0.4% excluding COVID on a currency-neutral basis.

Outlook and guidance

• FY 2024 outlook: non-GAAP, currency-neutral revenue growth of 1.0%–2.5% and non-GAAP operating margin of 13.5%–14.0%.

• Outlook assumes continued transformation initiatives, expense management, and a cautiously optimistic view of gradual biopharma recovery in H2 2024.

• Forecast non-GAAP operating margin excludes 87 bps for purchased-intangible amortization; future unpredictable gains and charges are excluded from the forecast.