Why Bio-Rad Laboratories Stock Slipped by More Than 3% on Thursday

Healthcare diagnostics product supplier Bio-Rad Laboratories (NYSE: BIO) notched twin beats in its just-released third quarter, but that wasn't enough for a choosy stock market. Investors sold out of the company's shares in the wake of that earnings report to leave it with an over 3% loss on Thursday. This was a steeper fall than the 0.9% decline of the benchmark S&P 500 index.

Modest improvements

Bio-Rad's Q3 saw the company book $653 million in revenue, which was very modestly (0.5%) higher on a year-over-year basis. Net income not according to generally accepted accounting principles (GAAP) rose at a slightly higher rate, advancing by 8% to just under $61 million. On a per-share basis, that non-GAAP (adjusted) bottom line figure was $2.26.

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Although Bio-Rad didn't post explosive growth, those numbers were high enough to beat the consensus analyst estimates. Collectively, prognosticators following the company had anticipated its top line would land at $652.2 million and adjusted net income would be $1.95 per share.

In the company's earnings release, it attributed the thin growth numbers to tightening biotech funding and "ongoing challenges in academic research."

Guidance maintained

It doesn't appear as if those roadblocks are going to disappear in the proximate future. Bio-Rad maintained its guidance for the entirety of 2025 in which it's forecasting revenue growth flat to 1% above the 2024 result. Its adjusted operating margin should fall at 12% to 13%, the company added.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.