The Bio-Rad Laboratories, Inc. (NYSE:BIO) Third-Quarter Results Are Out And Analysts Have Published New Forecasts

Bio-Rad Laboratories, Inc. (NYSE:BIO) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to US$369 in the week after its latest third-quarter results. It was a credible result overall, with revenues of US$656m and statutory earnings per share of US$27.85 both in line with analyst estimates, showing that Bio-Rad Laboratories is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bio-Rad Laboratories after the latest results.

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Following last week's earnings report, Bio-Rad Laboratories' three analysts are forecasting 2027 revenues to be US$2.62b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 78% to US$8.51 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.62b and earnings per share (EPS) of US$10.34 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Bio-Rad Laboratories

The consensus price target held steady at US$335, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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$390 per share, while the most pessimistic values it at US$280. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2027. Historically, Bio-Rad Laboratories' top line has shrunk approximately 3.1% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.0% annually. So it's pretty clear that, although revenues are improving, Bio-Rad Laboratories is still expected to grow slower than the industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bio-Rad Laboratories' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$335, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Bio-Rad Laboratories going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Bio-Rad Laboratories (1 shouldn't be ignored!) that you should be aware of.

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