Bio-Rad Laboratories (NYSE:BIO) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Bio-Rad Laboratories shares gapped up significantly from a previous close of $241.95 to an opening price of $270.93 following a quarterly earnings report that exceeded analysts' expectations.
• The company reported $2.61 earnings per share, beating the consensus estimate by $0.68, with quarterly revenue of $651.60 million also surpassing expectations.
• Analysts have varied opinions on Bio-Rad, with recent price objectives being reduced, yet the stock holds an average rating of "Moderate Buy" and a consensus target price of $324.25.

Bio-Rad Laboratories, Inc. (NYSE:BIO - Get Free Report) gapped up before the market opened on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $241.95, but opened at $270.93. Bio-Rad Laboratories shares last traded at $283.85, with a volume of 86,463 shares trading hands.

The medical research company reported $2.61 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.93 by $0.68. The company had revenue of $651.60 million for the quarter, compared to analyst estimates of $614.82 million. Bio-Rad Laboratories had a net margin of 12.50% and a return on equity of 4.01%. The business's quarterly revenue was up 2.1% on a year-over-year basis. During the same period last year, the business posted $3.11 EPS.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Royal Bank Of Canada lifted their target price on shares of Bio-Rad Laboratories from $387.00 to $409.00 and gave the company an "outperform" rating in a research report on Friday. Citigroup decreased their target price on shares of Bio-Rad Laboratories from $400.00 to $350.00 and set a "buy" rating on the stock in a research report on Friday, May 2nd. UBS Group decreased their target price on shares of Bio-Rad Laboratories from $355.00 to $310.00 and set a "buy" rating on the stock in a research report on Friday, May 2nd. Wall Street Zen upgraded shares of Bio-Rad Laboratories from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Wells Fargo & Company lifted their price target on shares of Bio-Rad Laboratories from $245.00 to $265.00 and gave the company an "equal weight" rating in a report on Friday. One analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $333.50.

Hedge Funds Weigh In On Bio-Rad Laboratories

Several institutional investors have recently added to or reduced their stakes in the company. Plato Investment Management Ltd lifted its holdings in Bio-Rad Laboratories by 211.3% during the 2nd quarter. Plato Investment Management Ltd now owns 1,317 shares of the medical research company's stock valued at $317,000 after purchasing an additional 894 shares during the last quarter. GAM Holding AG bought a new position in shares of Bio-Rad Laboratories in the second quarter worth about $724,000. Atria Investments Inc raised its stake in shares of Bio-Rad Laboratories by 64.1% in the second quarter. Atria Investments Inc now owns 3,195 shares of the medical research company's stock worth $771,000 after acquiring an additional 1,248 shares during the last quarter. Assetmark Inc. raised its stake in shares of Bio-Rad Laboratories by 131.4% in the second quarter. Assetmark Inc. now owns 21,175 shares of the medical research company's stock worth $5,110,000 after acquiring an additional 12,023 shares during the last quarter. Finally, First Pacific Advisors LP raised its stake in shares of Bio-Rad Laboratories by 3.9% in the second quarter. First Pacific Advisors LP now owns 386,949 shares of the medical research company's stock worth $93,379,000 after acquiring an additional 14,394 shares during the last quarter. 65.24% of the stock is owned by institutional investors.

Bio-Rad Laboratories Stock Performance

The company has a market capitalization of $7.40 billion, a P/E ratio of 23.18 and a beta of 0.90. The company has a debt-to-equity ratio of 0.17, a current ratio of 5.12 and a quick ratio of 3.67. The stock's 50 day simple moving average is $242.22 and its two-hundred day simple moving average is $259.34.

About Bio-Rad Laboratories

Bio-Rad Laboratories, Inc manufactures and distributes life science research and clinical diagnostic products in the United States, Europe, Asia, Canada, and Latin America. It operates through two segments, Life Science and Clinical Diagnostics. The company develops, manufactures, and markets instruments, systems, reagents, and consumables to separate, purify, characterize, and quantitate biological materials such as cells, proteins, and nucleic acids for proteomics, genomics, biopharmaceutical production, cellular biology, and food safety markets.