Last week saw the newest quarterly earnings release from Bio-Rad Laboratories, Inc. (NYSE:BIO), an important milestone in the company's journey to build a stronger business. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Bio-Rad Laboratories' five analysts is for revenues of US$2.66b in 2024. This would reflect 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. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.71b and earnings per share (EPS) of US$15.77 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target fell 6.2% to US$394, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bio-Rad Laboratories analyst has a price target of US$440 per share, while the most pessimistic values 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.

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. We would highlight that Bio-Rad Laboratories' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2024 being well below the historical 4.2% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bio-Rad Laboratories.

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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Bio-Rad Laboratories' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Bio-Rad Laboratories. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bio-Rad Laboratories going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, 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.