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Why Is Qiagen (QGEN) Down 11.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Qiagen (QGEN - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Qiagen due for a breakout? 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 drivers.
QIAGEN Q4 Earnings Surpass Estimates, Margins Down
QIAGEN’s fourth-quarter 2021 adjusted earnings per share were 74 cents (75 cents constant exchange rate or CER), up 8.8% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 23.3%.
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 56 cents per share, down 38.5% year over year.
For the full year, adjusted earnings were $2.65 per share, 23.3% up from the year-ago period. It also beat the Zacks Consensus Estimate by 5.2%.
Revenues in Detail
Net sales in the fourth quarter rose 1.9% on a year-over-year basis to $582.4 million (up 4% at CER). The top line exceeded the Zacks Consensus Estimate by 9.4%. Top-line growth also exceeded the company’s fourth-quarter net sales expectation of 9% CER decline.
Sales were driven by high demand for COVID-19 test products and improving trends in the non-COVID portfolio.
Full-year revenues were $2.25 billion, reflecting a 20.4% increase from the year-ago period. Revenues also surpassed the Zacks Consensus Estimate by 2.3%.
Geographical Revenue Update
In the quarter under review, sales from the Americas (44% of sales) totaled $259 million, up 5% on a reported basis (up 5% at CER).
Revenues from Europe, Middle East and Africa (38% of sales) fell 3% reportedly (up 2% at CER) to $219 million.
Further, revenues from Asia-Pacific/ Japan (18% of sales) increased 6% year over year on a reported basis (up 7% at CER) to $104 million.
Segmental Details
As of the fourth quarter of 2021, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 54% of net sales) revenues were up 9% on a reported basis (up 12% at CER) to $313 million.
Life Sciences (46% of total revenues) reported revenues of $269 million, down 5% on a reported basis (down 4% at CER).
Operational Update
Adjusted gross profit in the quarter under review fell 0.4% to $389.3 million. Adjusted gross margin also contracted 159 basis points (bps) to 66.8% due to a 7.1% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $193.1 million.
Sales and marketing expenses of QIAGEN fell 1.6% to $119.4 million year over year. Research and development expenses decreased 9.1% year over year to $42.1 million whereas general and administrative expenses rose 3.8% year over year to $32.9 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) rose 1.8% year over year to $194.9 million in the fourth quarter. Adjusted operating margin, however, contracted 5 bps to 33.5%.
Financial Update
QIAGEN exited 2021 with cash and cash equivalents, and short-term investments of $1.07 billion, up from $715.2 million at the end of 2020. Long-term debt was $1.09 billion in 2021, down from $1.88 billion in the prior quarter.
Cumulative net cash flow from operating activities at the end of 2021 was $639 million compared with $457.8 million a year ago.
Guidance
QIAGEN initiated an outlook for full-year 2022
Full-year net sales is expected to be at least $2.07 billion at CER compared with $2.25 billion in the year-ago quarter. The Zacks Consensus Estimate for the metric is pegged at $2.09 billion.
Adjusted earnings per share for 2021 is expected to be at least $2.05 at CER compared with $2.65 in the year-ago quarter. The Zacks Consensus Estimate for adjusted earnings per share is pegged at $1.98.
For the fourth quarter, the company expects net sales to grow at least 7% CER. The Zacks Consensus Estimate for the same is pegged at $531.5 million.
Adjusted earnings per share is expected to be at least 72 cents at CER compared with 66 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted earnings per share is pegged at 60 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
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Why Is Qiagen (QGEN) Down 11.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Qiagen (QGEN - Free Report) . Shares have lost about 11.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Qiagen due for a breakout? 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 drivers.
QIAGEN Q4 Earnings Surpass Estimates, Margins Down
QIAGEN’s fourth-quarter 2021 adjusted earnings per share were 74 cents (75 cents constant exchange rate or CER), up 8.8% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 23.3%.
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 56 cents per share, down 38.5% year over year.
For the full year, adjusted earnings were $2.65 per share, 23.3% up from the year-ago period. It also beat the Zacks Consensus Estimate by 5.2%.
Revenues in Detail
Net sales in the fourth quarter rose 1.9% on a year-over-year basis to $582.4 million (up 4% at CER). The top line exceeded the Zacks Consensus Estimate by 9.4%. Top-line growth also exceeded the company’s fourth-quarter net sales expectation of 9% CER decline.
Sales were driven by high demand for COVID-19 test products and improving trends in the non-COVID portfolio.
Full-year revenues were $2.25 billion, reflecting a 20.4% increase from the year-ago period. Revenues also surpassed the Zacks Consensus Estimate by 2.3%.
Geographical Revenue Update
In the quarter under review, sales from the Americas (44% of sales) totaled $259 million, up 5% on a reported basis (up 5% at CER).
Revenues from Europe, Middle East and Africa (38% of sales) fell 3% reportedly (up 2% at CER) to $219 million.
Further, revenues from Asia-Pacific/ Japan (18% of sales) increased 6% year over year on a reported basis (up 7% at CER) to $104 million.
Segmental Details
As of the fourth quarter of 2021, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 54% of net sales) revenues were up 9% on a reported basis (up 12% at CER) to $313 million.
Life Sciences (46% of total revenues) reported revenues of $269 million, down 5% on a reported basis (down 4% at CER).
Operational Update
Adjusted gross profit in the quarter under review fell 0.4% to $389.3 million. Adjusted gross margin also contracted 159 basis points (bps) to 66.8% due to a 7.1% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $193.1 million.
Sales and marketing expenses of QIAGEN fell 1.6% to $119.4 million year over year. Research and development expenses decreased 9.1% year over year to $42.1 million whereas general and administrative expenses rose 3.8% year over year to $32.9 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) rose 1.8% year over year to $194.9 million in the fourth quarter. Adjusted operating margin, however, contracted 5 bps to 33.5%.
Financial Update
QIAGEN exited 2021 with cash and cash equivalents, and short-term investments of $1.07 billion, up from $715.2 million at the end of 2020. Long-term debt was $1.09 billion in 2021, down from $1.88 billion in the prior quarter.
Cumulative net cash flow from operating activities at the end of 2021 was $639 million compared with $457.8 million a year ago.
Guidance
QIAGEN initiated an outlook for full-year 2022
Full-year net sales is expected to be at least $2.07 billion at CER compared with $2.25 billion in the year-ago quarter. The Zacks Consensus Estimate for the metric is pegged at $2.09 billion.
Adjusted earnings per share for 2021 is expected to be at least $2.05 at CER compared with $2.65 in the year-ago quarter. The Zacks Consensus Estimate for adjusted earnings per share is pegged at $1.98.
For the fourth quarter, the company expects net sales to grow at least 7% CER. The Zacks Consensus Estimate for the same is pegged at $531.5 million.
Adjusted earnings per share is expected to be at least 72 cents at CER compared with 66 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted earnings per share is pegged at 60 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.