Bio-Rad's Q4 2024 Earnings Call: Diverging Views on Digital PCR Growth, Chromatography Recovery, and Life Sciences Orders

These are the key contradictions discussed in Bio-Rad Laboratories' latest 2024Q4 earnings call, specifically including: Digital PCR Growth Expectations, Process Chromatography Destocking and Recovery, and Life Sciences Order Trends and Funnel Activity:



Revenue Performance:
- Bio-Rad Laboratories reported net sales for the fourth quarter of 2024 at $668 million, representing a 2% decline on a reported basis and a 2.3% year-over-year decrease on a currency-neutral basis.
- This decline was mainly due to lower sales in the Life Science segment, which experienced a 5.5% decline on a reported basis and 6% on a currency-neutral basis.

Segment Performance:
- The Life Science Group sales were $275 million in Q4 2024, compared to $291 million in Q4 2023, showing a decline of 5.5% on a reported basis and 6% on a currency-neutral basis.
- The Clinical Diagnostics Group registered an increase of 0.9% on a reported basis and 0.7% on a currency-neutral basis, driven by increased demand for quality control and blood typing products.

Operational and Strategic Initiatives:
- Bio-Rad achieved gross margin expansion in 2024 through lean initiatives and rationalization of its global footprint, which is expected to continue in 2025.
- The company entered into an agreement to acquire Stilla Technologies, aimed at enhancing its digital PCR portfolio and expanding its product strategy in applied research and clinical diagnostics.

Financial Outlook:
- For 2025, Bio-Rad is projecting a currency-neutral revenue growth between 1.5% and 3.5%, with an expected non-GAAP gross margin between 55% and 55.5%.
- The guidance contemplates continued softness in academic and biopharma markets, with a focus on operational excellence and cost management.