Bio-Rad Laboratories beats quarterly profit estimates on strong sales in diagnostics unit

Bio-Rad Laboratories

30/10/2024 22:07

Oct 30 (Reuters) - Diagnostics firm Bio-Rad Laboratories
 BIO.N  posted third-quarter profit above Wall Street estimates
on Wednesday, helped by a recovery in demand for analytical
tools from its biotech clients and steady clinical diagnostics
products sales growth. 
    Shares of the Hercules, California-based company rose 2.85%
to $340 in extended trading.
    The company supplies laboratory equipment and instruments
for drug manufacturers and biotech companies. Bio-Rad also
produces and sells blood and other diagnostic test kits to
hospitals and physicians.
    Decreased spending in the biotech sector, as well as
sluggish demand from China, a key region for drug development,
has hit Bio-Rad's profits in recent quarters. 
    Some analysts are hopeful that a recent interest rate cut by
the Federal Reserve could improve funding for small- and
medium-sized biotechs and boost demand. 
     Last week, large rival Thermo Fisher Scientific  TMO.N 
raised its annual profit forecast, banking on demand for its
tools and services used in clinical trials.
    The company continues to view annual adjusted revenue to
decline by about 2.5% to 4%, on a currency-neutral basis.
    Sales from the company's clinical diagnostics unit, its
largest by revenue, rose 5.6% to $388.8 million.
    Bio-Rad posted third-quarter total net sales of $649.7
million, topping analysts' estimates of $628.2 million. 
    On an adjusted basis, Bio-Rad recorded a per-share profit of
$2.01 in the quarter ended Sept. 30, above analysts' estimate of
$1.16.

 (Reporting by Bhanvi Satija and Sruthi Narasimha Chari in
Bengaluru; Editing by Alan Barona and Mohammed Safi Shamsi)
 ((mailto:Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788))