Yahoo Finance Here's What Analysts Are Forecasting For Bio-Rad Laboratories, Inc. (NYSE:BIO) After Its First-Quarter Results
The first-quarter results for Bio-Rad Laboratories, Inc. (NYSE:BIO) were released last week, making it a good time to revisit its performance. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Bio-Rad Laboratories
Taking into account the latest results, the most recent consensus for Bio-Rad Laboratories from six analysts is for revenues of US$2.66b in 2024. If met, it would imply a satisfactory 2.1% increase on its revenue over the past 12 months. Earnings are expected to improve, with Bio-Rad Laboratories forecast to report a statutory profit of US$10.30 per share. Before this earnings report, the analysts had been forecasting revenues of US$2.71b and earnings per share (EPS) of US$15.77 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$402, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Bio-Rad Laboratories at US$441 per share, while the most bearish prices it at US$300. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Bio-Rad Laboratories' revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2024 being well below the historical 4.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Bio-Rad Laboratories is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bio-Rad Laboratories. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Bio-Rad Laboratories analysts - going out to 2026, and you can see them free on our platform here.
We also provide an overview of the Bio-Rad Laboratories Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
