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QIAGEN's (QGEN) Q3 Earnings Top Estimates, 2022 View Up
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QIAGEN N.V.’s (QGEN - Free Report) third-quarter 2022 adjusted earnings per share (EPS) were 53 cents (55 cents at constant exchange rate or CER), down 8.6% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 17.8%.
The bottom line exceeded the company’s third-quarter guidance of at least 48 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition and restructuring-related expenses and purchased intangibles amortization expenses, among others.
GAAP EPS for the quarter was 36 cents per share, down 36.8% year over year.
Revenues in Detail
Net sales in the third quarter fell 7% on a year-over-year basis to $499.6 million (flat year over year at CER). The top line exceeded the Zacks Consensus Estimate by 4.1%. Sales at CER were $533 million, also exceeding the company’s third-quarter expectation of $510 million at CER.
The third-quarter sales were driven by 8% CER growth in the non-COVID-19 portfolio to $417 million. However, sales of COVID-19 products plunged 43% at CER.
Geographical Revenue Update
In the quarter under review, sales from the Americas (50% of sales) totaled $251 million, up 1% on a reported basis.
Revenues from Europe, the Middle East and Africa (31% of sales) fell 11% reportedly (up 3% at CER) to $155 million.
Further, revenues from Asia-Pacific/Japan (19% of sales) fell 17% year over year on a reported basis (down 9% at CER) to $93 million.
Segmental Details
As of the third quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 51.5% of net sales) revenues were down 8% on a reported basis (down 1% at CER) to $257 million.
Life Sciences (48.5% of total revenues) reported revenues of $242 million, down 5% on a reported basis (flat at CER).
Operational Update
Adjusted gross profit in the quarter under review fell 4.9% to $336.1 million. Meanwhile, the adjusted gross margin expanded 116 basis points (bps) to 67.3% on a 9.8% drop in the total cost of sales (adjusting for acquisition-related intangible amortization) to $163.5 million.
Sales and marketing expenses of QIAGEN rose 1.5% to $114.6 million year over year. Research and development expenses rose 1.2% year over year to $48.9 million, whereas general and administrative expenses rose 1.7% year over year to $30.9 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration and asset impairment) declined 12.5% year over year to $141.8 million in the third quarter. Meanwhile, the adjusted operating margin contracted 192 bps to 28.4%.
Financial Update
QIAGEN exited third-quarter 2022 with cash and cash equivalents and short-term investments of $1.89 billion, up from $1.31 billion at the end of second-quarter 2022. Long-term debt was $2.28 billion in third-quarter 2022.
Cumulative net cash flow from operating activities at the end of third-quarter 2022 was $590.9 million compared with $440.5 million in the year-ago period.
Guidance
QIAGEN updated its outlook for full-year 2022.
Full-year net sales are expected to be about $2.25 billion at CER (up from the previously projected $2.20 billion). The Zacks Consensus Estimate for the metric is pegged at $2.11 billion.
Adjusted EPS for 2022 is expected to be about $2.40 at CER (up from the prior projection of $2.30). The Zacks Consensus Estimate for adjusted EPS is pegged at $2.20.
For the fourth quarter, the company expects net sales to grow at least $520 million at CER compared with $582 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $487.2 million.
Adjusted EPS is expected to be at least 50 cents at CER compared with 74 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 45 cents.
Our Take
QIAGEN ended third-quarter 2022 with better-than-expected earnings and revenues. However, on a year-over-year basis, earnings and sales both declined. The massive decline in COVID-19 product sales and severe foreign exchange headwind impacted overall performance. The contraction of operating margin is a cause of worry.
However, ongoing double-digit sales growth in the non-COVID product portfolio, a high level of profitability and strong cash flow are the major upsides. The company continues to see broad-based demand for QIAGEN’s solutions in both molecular research and clinical testing markets globally. The raised full-year 2022 guidance for net sales and EPS indicates this growth momentum to continue.
Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.
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QIAGEN's (QGEN) Q3 Earnings Top Estimates, 2022 View Up
QIAGEN N.V.’s (QGEN - Free Report) third-quarter 2022 adjusted earnings per share (EPS) were 53 cents (55 cents at constant exchange rate or CER), down 8.6% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 17.8%.
The bottom line exceeded the company’s third-quarter guidance of at least 48 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition and restructuring-related expenses and purchased intangibles amortization expenses, among others.
GAAP EPS for the quarter was 36 cents per share, down 36.8% year over year.
Revenues in Detail
Net sales in the third quarter fell 7% on a year-over-year basis to $499.6 million (flat year over year at CER). The top line exceeded the Zacks Consensus Estimate by 4.1%. Sales at CER were $533 million, also exceeding the company’s third-quarter expectation of $510 million at CER.
QIAGEN N.V. Price, Consensus and EPS Surprise
QIAGEN N.V. price-consensus-eps-surprise-chart | QIAGEN N.V. Quote
The third-quarter sales were driven by 8% CER growth in the non-COVID-19 portfolio to $417 million. However, sales of COVID-19 products plunged 43% at CER.
Geographical Revenue Update
In the quarter under review, sales from the Americas (50% of sales) totaled $251 million, up 1% on a reported basis.
Revenues from Europe, the Middle East and Africa (31% of sales) fell 11% reportedly (up 3% at CER) to $155 million.
Further, revenues from Asia-Pacific/Japan (19% of sales) fell 17% year over year on a reported basis (down 9% at CER) to $93 million.
Segmental Details
As of the third quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 51.5% of net sales) revenues were down 8% on a reported basis (down 1% at CER) to $257 million.
Life Sciences (48.5% of total revenues) reported revenues of $242 million, down 5% on a reported basis (flat at CER).
Operational Update
Adjusted gross profit in the quarter under review fell 4.9% to $336.1 million. Meanwhile, the adjusted gross margin expanded 116 basis points (bps) to 67.3% on a 9.8% drop in the total cost of sales (adjusting for acquisition-related intangible amortization) to $163.5 million.
Sales and marketing expenses of QIAGEN rose 1.5% to $114.6 million year over year. Research and development expenses rose 1.2% year over year to $48.9 million, whereas general and administrative expenses rose 1.7% year over year to $30.9 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration and asset impairment) declined 12.5% year over year to $141.8 million in the third quarter. Meanwhile, the adjusted operating margin contracted 192 bps to 28.4%.
Financial Update
QIAGEN exited third-quarter 2022 with cash and cash equivalents and short-term investments of $1.89 billion, up from $1.31 billion at the end of second-quarter 2022. Long-term debt was $2.28 billion in third-quarter 2022.
Cumulative net cash flow from operating activities at the end of third-quarter 2022 was $590.9 million compared with $440.5 million in the year-ago period.
Guidance
QIAGEN updated its outlook for full-year 2022.
Full-year net sales are expected to be about $2.25 billion at CER (up from the previously projected $2.20 billion). The Zacks Consensus Estimate for the metric is pegged at $2.11 billion.
Adjusted EPS for 2022 is expected to be about $2.40 at CER (up from the prior projection of $2.30). The Zacks Consensus Estimate for adjusted EPS is pegged at $2.20.
For the fourth quarter, the company expects net sales to grow at least $520 million at CER compared with $582 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $487.2 million.
Adjusted EPS is expected to be at least 50 cents at CER compared with 74 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 45 cents.
Our Take
QIAGEN ended third-quarter 2022 with better-than-expected earnings and revenues. However, on a year-over-year basis, earnings and sales both declined. The massive decline in COVID-19 product sales and severe foreign exchange headwind impacted overall performance. The contraction of operating margin is a cause of worry.
However, ongoing double-digit sales growth in the non-COVID product portfolio, a high level of profitability and strong cash flow are the major upsides. The company continues to see broad-based demand for QIAGEN’s solutions in both molecular research and clinical testing markets globally. The raised full-year 2022 guidance for net sales and EPS indicates this growth momentum to continue.
Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space that have announced quarterly results are AMN Healthcare Services, Inc. (AMN - Free Report) , Medpace Holdings, Inc. (MEDP - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy), reported third-quarter 2022 adjusted EPS of $2.57, which beat the Zacks Consensus Estimate by 10.3%. Revenues of $1.14 billion outpaced the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed estimates in all the trailing four quarters, the average being 10.9%.
Medpace Holdings, sporting a Zacks Rank #1, reported third-quarter 2022 EPS of $2.05, which beat the Zacks Consensus Estimate by 39.5%. Revenues of $383.7 million outpaced the consensus mark by 8.1%.
Medpace Holdings has an estimated growth rate of 44.9% for the full-year 2022. MEDP’s earnings surpassed estimates in all the trailing four quarters, the average being 22%.
Merit Medical, carrying a Zacks Rank #2, reported third-quarter 2022 adjusted EPS of 64 cents, which beat the Zacks Consensus Estimate by 20.8%. Revenues of $287.2 million outpaced the consensus mark by 5.2%.
Merit Medical has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average being 25.4%.