Why Is Clinical Diagnostic-Focused Bio-Rad Stock Trading Lower Today?

Bio-Rad Laboratories Inc BIO shares are trading lower after the company lowered its annual revenue growth forecast, citing the uncertain pace of the biopharma sector's recovery and the ongoing macro challenges.

The company reported Q3 sales of $632.1 million, missing the consensus of $689.57 million. Adjusted EPS reached $2.33, down from 2.64 a year ago and missing the consensus of $2.78.

Bio-Rad's life science segment reported a 17.1% fall in sales to $263.5 million.

Excluding COVID-related sales, Life Science revenue decreased 13.7% and was primarily driven by lower sales of qPCR, process chromatography, and western blotting products.

"Our third-quarter results came in below our expectations and were primarily impacted by further deterioration in biopharma and early biotech customer spending, as well as a challenging macroeconomic environment in China," said Norman Schwartz, Bio-Rad's President and CEO.

Guidance: Bio-Rad expects FY23 adjusted revenue growth between 0% and 0.5% on a currency-neutral basis, compared with a previously expected growth of 4.5%. The outlook excludes COVID-related sales.

The company expects its adjusted revenue to decline by approximately 3.5% on a currency-neutral basis compared to its previous estimate of a 0.8% revenue growth.

Bio-Rad also estimates an adjusted operating margin of about 14.5% versus the company's prior estimate of approximately 16%.

Price Action: BIO shares are down 6.90% at $271.54 on the last check Friday.