Bio-Rad Laboratories A 2025 Q1 Earnings Misses Targets as Net Income Plummets 83%

Bio-Rad Laboratories A (BIO) reported its fiscal 2025 Q1 earnings on May 1st, 2025. The company experienced a challenging quarter, with both revenue and earnings missing expectations. Management has revised its guidance downward, reflecting the current market uncertainties. Bio-Rad now anticipates a decline in non-GAAP, currency-neutral revenue for the full year, with operating margins also expected to be lower than previously estimated. The company remains focused on strategic initiatives to drive growth and margin expansion despite these headwinds.

Revenue
Bio-Rad Laboratories A reported a 4.2% decrease in total revenue for the first quarter of 2025, totaling $585.40 million compared to $610.80 million in the same quarter last year. The Life Science segment generated $228.60 million, while the Clinical Diagnostics segment contributed $356.80 million, culminating in the overall revenue figure.

Earnings/Net Income
The company's EPS dropped significantly by 83% to $2.29 from $13.46 in the previous year’s Q1. Net income similarly declined by 83.3% to $64 million from $383.90 million. This substantial decrease in EPS and net income indicates a difficult quarter for Bio-Rad's financial performance.

Price Action
The stock price of Bio-Rad Laboratories A has edged down 1.06% during the latest trading day, has dropped 3.73% during the most recent full trading week, and has edged down 1.29% month-to-date.

Post-Earnings Price Action Review
Following the recent earnings report, Bio-Rad Laboratories A's stock has shown a trend of underperformance in the short term. Historical data reveals that the company's earnings metrics, including revenue, net income, and EPS, do not consistently lead to positive stock price movements shortly after announcements. With win rates below 50% for 3-day, 10-day, and 30-day periods post-earnings, the stock has not demonstrated significant opportunities for short-term gains. The maximum return observed over a 30-day period was a mere 0.12%, suggesting that investors may encounter limited near-term price appreciation following the earnings release.

CEO Commentary
Norman Schwartz, Chairman and Chief Executive Officer of Bio-Rad Laboratories, highlighted the company's ability to navigate a challenging first quarter while maintaining solid margins through focused execution and careful expense management. He noted the ongoing market uncertainty has led to a moderation of the full-year 2025 outlook. Despite these challenges, Schwartz emphasized the company's commitment to advancing growth and margin expansion initiatives.

Guidance
Bio-Rad is updating its full-year 2025 financial outlook, now expecting non-GAAP, currency-neutral revenue to decline by approximately 1.0 percent to 1.5 percent, a decrease from the previous growth estimate of 1.5 to 3.5 percent. The anticipated non-GAAP operating margin is revised to approximately 10.0 to 12.0 percent, down from the earlier expectation of roughly 13.0 to 13.5 percent.

Additional News
Bio-Rad Laboratories has announced intentions to acquire Stilla Technologies, a developer of next-generation digital PCR solutions. This acquisition aims to complement Bio-Rad’s existing digital PCR portfolio and accelerate the development of advanced digital PCR solutions. The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2025. CEO Norman Schwartz noted that this acquisition aligns with Bio-Rad's strategy to expand its offerings in applied research and clinical diagnostics, meeting the evolving needs of its global customer base.