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QIAGEN (QGEN) Q1 Earnings Top Estimates, Margins Expand
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QIAGEN N.V.’s (QGEN - Free Report) first-quarter 2024 adjusted earnings per share (EPS) were 46 cents and 47 cents at constant exchange rate (CER), down 9.8% year over year. However, the figure topped the Zacks Consensus Estimate by 4.6%.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition and restructuring-related expenses, purchased intangible amortization expenses and non-cash interest expense charges, among others.
The GAAP EPS for the quarter was 36 cents, down 2.7% year over year.
Revenues in Detail
Quarterly net sales were down 5.5% year over year to $458.8 million (down 5% at CER). The top line beat the Zacks Consensus Estimate by 0.7%. Sales at CER were $462 million, ahead of the outlook of at least $455 million.
Geographical Revenue Analysis
Sales from the Americas (50.9% of sales) totaled $234 million, down 5% year over year and at CER.
Revenues from Europe, the Middle East and Africa (33.3%) were down 2% on a reported basis and at CER to $155 million. Sales in the non-COVID product groups declined at a low-single-digit CER.
Revenues from Asia-Pacific/Japan (15.7%) fell 13% year over year on a reported basis (down 9% at CER) to $72 million.
Segmental Details
As of the first quarter of 2024, QIAGEN had two major customer classes — Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 53.2% of net sales) revenues were down 3% on a reported basis (down 2% at CER) to $244 million.
Life Sciences (46.8%) reported revenues of $215 million, down 8% on a reported basis and at CER).
Operational Update
Adjusted gross profit (excluding the amortization of acquisition-related intangibles) fell 5.1% year over year to $307.1 million.
Meanwhile, adjusted gross margin expanded 28 basis points in the first quarter (bps) to 66.9% on a 6.3% decline in the cost of sales (excluding amortization) to $151.7 million.
Sales and marketing expenses fell 3.1% year over year to $111.1 million. R&D expenses of $51.3 million were down 6.2% year over year. G&A expenses declined 16.3% year over year to $27.6 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring, and integration and others) decreased 3.4% year over year to $117 million. Meanwhile, adjusted operating margin expanded 54 bps to 25.5%.
Financial Update
QIAGEN exited the first quarter of 2024 with cash and cash equivalents and short-term investments of $893.1 million compared with $1.05 billion at the end of fourth-quarter 2023. The long-term debt (net of current portion) was $912.8 million at the end of the first quarter of 2024 compared with $921.8 million at the end of fourth quarter 2023.
The cumulative net cash provided by operating activities at the end of the first quarter of 2024 was $133.1 million compared with $71.9 million in the year-ago period.
Guidance
QIAGEN reaffirmed its financial outlook for 2024.
Full-year net sales are expected to be nearly $2.0 billion at CER. Consumables and related revenues are expected to drive growth, while larger-scale instrument sales remain challenging. The Zacks Consensus Estimate for revenues is pegged at $2.00 billion.
The adjusted EPS is expected to be at least $2.10 at CER. The Zacks Consensus Estimate is pegged at $2.09.
The company also provided second-quarter 2024 outlook.
QGEN estimates net sales of at least $495 million at CER. The Zacks Consensus Estimate is pegged at $494.9 million.
The adjusted EPS is expected to be at least 52 cents at CER. The Zacks Consensus Estimate is pegged at 51 cents.
Our Take
QIAGEN ended the first quarter of 2024 on a bullish note, with both earnings and revenues beating the Zacks Consensus Estimate. First-quarter results reflect higher consumables sales for automated kits used on the QIAsymphony, QIAcube Connect and EZ2 instruments. Results were also driven by solid growth in consumables. Further, QIAcuity digital PCR sales rose at a solid double-digit CER rate in the first quarter amid consumables demand and an ongoing high level of instrument placements. Expansion of both margins is an added advantage.
The company headlined on many occasions in the quarter, including partnership with International Panel Physicians Association to educate physicians worldwide on the latest tuberculosis screening requirements. The initiative will promote greater use of testing based on IGRA technology, such as QIAGEN's QuantiFERON-TB Plus. QIAGEN also launched QIAstat-Dx Analyzer 2.0 as an upgrade to the QIAstat-Dx syndromic testing system. All these developments bode well for the stock.
Meanwhile, QIAGEN registered year-over-year decline in revenues due to challenging macro demand trends. QIAGEN Digital Insights bioinformatics sales declined modestly in the reported quarter due to the timing of a large customer contract.
Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , DexCom, Inc. (DXCM - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted EPS of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
DexCom reported first-quarter 2024 adjusted earnings per share of 32 cents, which beat the Zacks Consensus Estimate of 27 cents by 18.5%. Revenues of $921 million surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.1%. DXCM’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 34.1%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.
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QIAGEN (QGEN) Q1 Earnings Top Estimates, Margins Expand
QIAGEN N.V.’s (QGEN - Free Report) first-quarter 2024 adjusted earnings per share (EPS) were 46 cents and 47 cents at constant exchange rate (CER), down 9.8% year over year. However, the figure topped the Zacks Consensus Estimate by 4.6%.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition and restructuring-related expenses, purchased intangible amortization expenses and non-cash interest expense charges, among others.
The GAAP EPS for the quarter was 36 cents, down 2.7% year over year.
Revenues in Detail
Quarterly net sales were down 5.5% year over year to $458.8 million (down 5% at CER). The top line beat the Zacks Consensus Estimate by 0.7%. Sales at CER were $462 million, ahead of the outlook of at least $455 million.
Geographical Revenue Analysis
Sales from the Americas (50.9% of sales) totaled $234 million, down 5% year over year and at CER.
Revenues from Europe, the Middle East and Africa (33.3%) were down 2% on a reported basis and at CER to $155 million. Sales in the non-COVID product groups declined at a low-single-digit CER.
Revenues from Asia-Pacific/Japan (15.7%) fell 13% year over year on a reported basis (down 9% at CER) to $72 million.
Segmental Details
As of the first quarter of 2024, QIAGEN had two major customer classes — Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 53.2% of net sales) revenues were down 3% on a reported basis (down 2% at CER) to $244 million.
Life Sciences (46.8%) reported revenues of $215 million, down 8% on a reported basis and at CER).
Operational Update
Adjusted gross profit (excluding the amortization of acquisition-related intangibles) fell 5.1% year over year to $307.1 million.
Meanwhile, adjusted gross margin expanded 28 basis points in the first quarter (bps) to 66.9% on a 6.3% decline in the cost of sales (excluding amortization) to $151.7 million.
Sales and marketing expenses fell 3.1% year over year to $111.1 million. R&D expenses of $51.3 million were down 6.2% year over year. G&A expenses declined 16.3% year over year to $27.6 million.
QIAGEN N.V. Price, Consensus and EPS Surprise
QIAGEN N.V. price-consensus-eps-surprise-chart | QIAGEN N.V. Quote
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring, and integration and others) decreased 3.4% year over year to $117 million. Meanwhile, adjusted operating margin expanded 54 bps to 25.5%.
Financial Update
QIAGEN exited the first quarter of 2024 with cash and cash equivalents and short-term investments of $893.1 million compared with $1.05 billion at the end of fourth-quarter 2023. The long-term debt (net of current portion) was $912.8 million at the end of the first quarter of 2024 compared with $921.8 million at the end of fourth quarter 2023.
The cumulative net cash provided by operating activities at the end of the first quarter of 2024 was $133.1 million compared with $71.9 million in the year-ago period.
Guidance
QIAGEN reaffirmed its financial outlook for 2024.
Full-year net sales are expected to be nearly $2.0 billion at CER. Consumables and related revenues are expected to drive growth, while larger-scale instrument sales remain challenging. The Zacks Consensus Estimate for revenues is pegged at $2.00 billion.
The adjusted EPS is expected to be at least $2.10 at CER. The Zacks Consensus Estimate is pegged at $2.09.
The company also provided second-quarter 2024 outlook.
QGEN estimates net sales of at least $495 million at CER. The Zacks Consensus Estimate is pegged at $494.9 million.
The adjusted EPS is expected to be at least 52 cents at CER. The Zacks Consensus Estimate is pegged at 51 cents.
Our Take
QIAGEN ended the first quarter of 2024 on a bullish note, with both earnings and revenues beating the Zacks Consensus Estimate. First-quarter results reflect higher consumables sales for automated kits used on the QIAsymphony, QIAcube Connect and EZ2 instruments. Results were also driven by solid growth in consumables. Further, QIAcuity digital PCR sales rose at a solid double-digit CER rate in the first quarter amid consumables demand and an ongoing high level of instrument placements. Expansion of both margins is an added advantage.
The company headlined on many occasions in the quarter, including partnership with International Panel Physicians Association to educate physicians worldwide on the latest tuberculosis screening requirements. The initiative will promote greater use of testing based on IGRA technology, such as QIAGEN's QuantiFERON-TB Plus. QIAGEN also launched QIAstat-Dx Analyzer 2.0 as an upgrade to the QIAstat-Dx syndromic testing system. All these developments bode well for the stock.
Meanwhile, QIAGEN registered year-over-year decline in revenues due to challenging macro demand trends. QIAGEN Digital Insights bioinformatics sales declined modestly in the reported quarter due to the timing of a large customer contract.
Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space that have announced quarterly results are Align Technology, Inc. (ALGN - Free Report) , DexCom, Inc. (DXCM - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
Align Technology, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2024 adjusted EPS of $2.14, beating the Zacks Consensus Estimate by 8.1%. Revenues of $997.4 million outpaced the consensus mark by 2.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Align Technology has a long-term estimated growth rate of 6.9%. ALGN’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 5.9%.
DexCom reported first-quarter 2024 adjusted earnings per share of 32 cents, which beat the Zacks Consensus Estimate of 27 cents by 18.5%. Revenues of $921 million surpassed the Zacks Consensus Estimate by 1.1%. It currently carries a Zacks Rank #2.
DexCom has a long-term estimated growth rate of 33.1%. DXCM’s earnings surpassed estimates in all of the trailing four quarters, the average surprise being 34.1%.
Boston Scientific reported first-quarter 2024 adjusted EPS of 56 cents, beating the Zacks Consensus Estimate by 9.8%. Revenues of $3.86 billion surpassed the Zacks Consensus Estimate by 4.9%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 12.5%. BSX’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 7.5%.