Analysts Are Updating Their Bio-Rad Laboratories, Inc. (NYSE:BIO) Estimates After Its Second-Quarter Results

Investors in Bio-Rad Laboratories, Inc. (NYSE:BIO) had a good week, as its shares rose 7.7% to close at US$285 following the release of its second-quarter results. The results were positive, with revenue coming in at US$652m, beating analyst expectations by 6.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Bio-Rad Laboratories' six analysts are forecasting 2025 revenues to be US$2.60b, approximately in line with the last 12 months. Statutory earnings per share are forecast to nosedive 38% to US$7.37 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.52b and earnings per share (EPS) of US$6.54 in 2025. So it seems there's been a definite increase in optimism about Bio-Rad Laboratories' future following the latest results, with a decent improvement in the earnings per share forecasts in particular.

Check out our latest analysis for Bio-Rad Laboratories

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$327, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Bio-Rad Laboratories analyst has a price target of US$409 per share, while the most pessimistic values it at US$265. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bio-Rad Laboratories shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Bio-Rad Laboratories is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.3% annualised growth until the end of 2025. If achieved, this would be a much better result than the 0.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.0% per year. Although Bio-Rad Laboratories' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bio-Rad Laboratories following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at US$327, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Bio-Rad Laboratories analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Bio-Rad Laboratories (1 is a bit concerning!) that we have uncovered.

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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.