Bio-Rad Laboratories B 2025 Q1 Earnings Misses Targets as Net Income Falls 83.3%

Bio-Rad Laboratories B (BIO.B) reported its fiscal 2025 Q1 earnings on May 01st, 2025. Bio-Rad Laboratories B missed expectations in its fiscal 2025 Q1 earnings, reporting a significant decline in net income and EPS compared to the previous year. Guidance for the full year has been adjusted downward, reflecting the challenging market conditions. The company now anticipates a currency-neutral revenue decline of approximately 1.0 percent to growth of 1.5 percent, which is lower than the prior estimate of 1.5 to 3.5 percent growth.

Revenue

Bio-Rad Laboratories B saw a 4.2% decrease in total revenue for 2025 Q1, amounting to $585.40 million. The Life Science segment contributed $228.60 million, reflecting ongoing market challenges, while the Clinical Diagnostics segment generated $356.80 million, indicating lowered reimbursements affecting sales. Together, these segments culminated in the total revenue figure reported.

Earnings/Net Income

The company's earnings per share (EPS) fell dramatically by 83.0% to $2.29 in 2025 Q1, down from $13.46 in 2024 Q1. Similarly, net income plummeted to $64 million, an 83.3% decline from the $383.90 million recorded in the same period last year. This significant drop in EPS highlights the unfavorable earnings outcome.

Post-Earnings Price Action Review

Bio-Rad Laboratories (BIO) demonstrated through backtest results that earnings report metrics such as revenue, net income, and EPS have not consistently translated into positive short-term stock gains. The 3-day win rates for revenue and net income stand at 38.10%, with EPS at a lower 28.57%. Despite these outcomes, the maximum observed return was a modest 0.12% over a 30-day period, indicating that these metrics do not strongly predict substantial stock price appreciation. This suggests that investors may not find immediate value post-earnings, despite the company's emphasis on managing margins through strategic execution and expense control.

CEO Commentary

Norman Schwartz, Chairman and Chief Executive Officer, emphasized that despite navigating a progressively challenging first quarter, Bio-Rad delivered solid margins through focused execution and careful expense management. He acknowledged ongoing challenges in the academic research market and lower reimbursements for diabetes testing in China affecting sales. Schwartz reaffirmed the company's commitment to advancing growth and margin expansion initiatives as they face market uncertainty, reflecting a cautious yet optimistic outlook on the company's resilience and adaptability in a dynamic environment.

Guidance

Bio-Rad is moderating its full-year 2025 outlook, expecting non-GAAP, currency-neutral revenue to decline approximately 1.0 percent to grow by 1.5 percent, down from a prior estimate of 1.5 to 3.5 percent growth. The company anticipates a non-GAAP operating margin of 10.0 to 12.0 percent, reduced from the previous expectation of 13.0 to 13.5 percent.

Additional News

In recent developments, Bio-Rad Laboratories announced a binding offer to acquire Stilla Technologies, a digital PCR developer. This acquisition is expected to complement Bio-Rad's existing digital PCR portfolio and accelerate the development of next-generation solutions. The transaction is subject to regulatory approvals and customary closing conditions, with an anticipated completion by the end of Q3 2025. This strategic move aims to expand Bio-Rad's business into applied research and clinical diagnostics, enhancing automation and throughput capabilities. The acquisition underscores Bio-Rad's commitment to innovation and meeting the evolving demands of genomics research and applied sciences.