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Why Is Qiagen (QGEN) Up 0.1% Since Last Earnings Report?
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A month has gone by since the last earnings report for Qiagen (QGEN - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qiagen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
QIAGEN Q1 Earnings Surpass Estimates, 2022 View Up
QIAGEN’s first-quarter 2022 adjusted earnings per share were 80 cents (83 cents at constant exchange rate or CER), up 21.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 12.7%.
Notably, the bottom line exceeded the company’s first-quarter guidance of at least 72 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition, restructuring-related expenses, and purchased intangibles amortization expenses, among others.
GAAP earnings per share for the quarter was 67 cents per share, up 19.6% year over year.
Revenues in Detail
Net sales in the first quarter rose 10.8% on a year-over-year basis to $628.4 million (up 15% at CER). The top line exceeded the Zacks Consensus Estimate by 6.5%. Top-line growth also exceeded the company’s first-quarter net sales expectation of 7% CER growth.
The first-quarter sales were driven by considerable CER growth in the non-COVID product portfolio and enhanced sales of COVID-19 testing and surveillance products.
Geographical Revenue Update
In the quarter under review, sales from the Americas (40% of sales) totaled $253 million, up 4% on a reported basis (up 4% at CER).
Revenues from Europe, Middle East and Africa (40% of sales) rose 14% reportedly (up 24% at CER) to $249 million.
Further, revenues from Asia-Pacific/ Japan (20% of sales) rose 21% year over year on a reported basis (up 25% at CER) to $126 million.
Segmental Details
As of the first quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 57% of net sales) revenues were up 28% on a reported basis (up 35% at CER) to $357 million.
Life Sciences (43% of total revenues) reported revenues of $272 million, down 6% on a reported basis (down 3% at CER).
Operational Update
Adjusted gross profit in the quarter under review rose 10.8% to $430.3 million. Meanwhile, adjusted gross margin expanded 3 basis points (bps) to 68.5% due to a 10.7% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $198.1 million.
Sales and marketing expenses of QIAGEN rose 4.2% to $118.5 million year over year. Research and development expenses contracted 2.2% year over year to $46.4 million, whereas general and administrative expenses rose 1.6% year over year to $34.4 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) increased 19.6% year over year to $231 million in the first quarter. Adjusted operating margin, however, expanded 270 bps to 36.8%.
Financial Update
QIAGEN exited first-quarter 2022 with cash and cash equivalents, and short-term investments of $1.23 billion, up from $1.07 billion at the end of 2021. Long-term debt was $1.47 billion in first-quarter 2022, up from $1.09 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of first-quarter 2022 was $207.4 million compared with $128.6 million in the year-ago period.
Guidance
QIAGEN has updated its outlook for full-year 2022, reaffirming its previous goal of double-digit CER sales growth from the non-COVID product groups while assuming a significant year-on-year decline in the COVID-19 product group sales based on the anticipated volatile pandemic trends this year. The updated outlook also considers the current inflation and other macroeconomic trends.
Full-year net sales are expected to be at least $2.12 billion at CER (up from the previously projected $2.07 billion) compared with $2.25 billion in 2021. The Zacks Consensus Estimate for the metric is pegged at $2.07 billion.
Adjusted EPS for 2022 is expected to be at least $2.14 at CER (up from the prior projection of $2.05) compared with $2.65 in 2021. The Zacks Consensus Estimate for adjusted EPS is pegged at $2.05.
For the second quarter, the company expects net sales to grow at least $510 million at CER compared with $567.2 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $485.4 million.
Adjusted EPS is expected to be at least 46 cents at CER compared with 67 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 44 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Qiagen has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Qiagen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Qiagen (QGEN) Up 0.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Qiagen (QGEN - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Qiagen due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
QIAGEN Q1 Earnings Surpass Estimates, 2022 View Up
QIAGEN’s first-quarter 2022 adjusted earnings per share were 80 cents (83 cents at constant exchange rate or CER), up 21.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 12.7%.
Notably, the bottom line exceeded the company’s first-quarter guidance of at least 72 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition, restructuring-related expenses, and purchased intangibles amortization expenses, among others.
GAAP earnings per share for the quarter was 67 cents per share, up 19.6% year over year.
Revenues in Detail
Net sales in the first quarter rose 10.8% on a year-over-year basis to $628.4 million (up 15% at CER). The top line exceeded the Zacks Consensus Estimate by 6.5%. Top-line growth also exceeded the company’s first-quarter net sales expectation of 7% CER growth.
The first-quarter sales were driven by considerable CER growth in the non-COVID product portfolio and enhanced sales of COVID-19 testing and surveillance products.
Geographical Revenue Update
In the quarter under review, sales from the Americas (40% of sales) totaled $253 million, up 4% on a reported basis (up 4% at CER).
Revenues from Europe, Middle East and Africa (40% of sales) rose 14% reportedly (up 24% at CER) to $249 million.
Further, revenues from Asia-Pacific/ Japan (20% of sales) rose 21% year over year on a reported basis (up 25% at CER) to $126 million.
Segmental Details
As of the first quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 57% of net sales) revenues were up 28% on a reported basis (up 35% at CER) to $357 million.
Life Sciences (43% of total revenues) reported revenues of $272 million, down 6% on a reported basis (down 3% at CER).
Operational Update
Adjusted gross profit in the quarter under review rose 10.8% to $430.3 million. Meanwhile, adjusted gross margin expanded 3 basis points (bps) to 68.5% due to a 10.7% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $198.1 million.
Sales and marketing expenses of QIAGEN rose 4.2% to $118.5 million year over year. Research and development expenses contracted 2.2% year over year to $46.4 million, whereas general and administrative expenses rose 1.6% year over year to $34.4 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) increased 19.6% year over year to $231 million in the first quarter. Adjusted operating margin, however, expanded 270 bps to 36.8%.
Financial Update
QIAGEN exited first-quarter 2022 with cash and cash equivalents, and short-term investments of $1.23 billion, up from $1.07 billion at the end of 2021. Long-term debt was $1.47 billion in first-quarter 2022, up from $1.09 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of first-quarter 2022 was $207.4 million compared with $128.6 million in the year-ago period.
Guidance
QIAGEN has updated its outlook for full-year 2022, reaffirming its previous goal of double-digit CER sales growth from the non-COVID product groups while assuming a significant year-on-year decline in the COVID-19 product group sales based on the anticipated volatile pandemic trends this year. The updated outlook also considers the current inflation and other macroeconomic trends.
Full-year net sales are expected to be at least $2.12 billion at CER (up from the previously projected $2.07 billion) compared with $2.25 billion in 2021. The Zacks Consensus Estimate for the metric is pegged at $2.07 billion.
Adjusted EPS for 2022 is expected to be at least $2.14 at CER (up from the prior projection of $2.05) compared with $2.65 in 2021. The Zacks Consensus Estimate for adjusted EPS is pegged at $2.05.
For the second quarter, the company expects net sales to grow at least $510 million at CER compared with $567.2 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $485.4 million.
Adjusted EPS is expected to be at least 46 cents at CER compared with 67 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 44 cents.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Qiagen has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Qiagen has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.