We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Qiagen (QGEN) Down 8.7% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Qiagen (QGEN - Free Report) . Shares have lost about 8.7% 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 catalysts.
QIAGEN Misses Q2 Earnings Estimates, Lowers View
QIAGEN N.V.’s second-quarter 2019 adjusted earnings per share (EPS) were 33 cents, missing the Zacks Consensus Estimate by 2.9%. The figure remained flat year over year. At constant exchange rate or CER, the quarter’s adjusted EPS was 34 cents.
Revenues in Detail
Net sales at actual rates in the second quarter inched up 1% on a year-over-year basis to $381.6 million (up 5% at CER). However, the top line missed the Zacks Consensus Estimate by 11.4%.
Geographical Revenue Update
In the quarter under review, sales from the Americas (47% of revenues) totaled $181 million, up 1% on a reported basis (1% at CER). Revenues from Europe-Middle East-Africa (31% of revenues) declined 2% reportedly (up 5% at CER) to $118 million. Further, revenues from Asia-Pacific/Japan (22% of revenues) rose 8% year over year on a reported basis (up 12% at CER) to $83 million.
Segmental Details
As of the second quarter of 2019, QIAGEN has two major customer classes which are Molecular Diagnostics (that includes human healthcare including Precision Medicine and companion diagnostics) and Life Sciences (that includes Pharma and Academia/Applied Testing).
Molecular diagnostics (representing 49% of net sales) revenues were up 5% at CER to $188 million.
Life Sciences (51% of total revenues) reported revenues of $194 million, up 5% at CER. Sales derived from Applied Testing/Academia rose 5% at CER to $118 million. Pharma sales climbed 4% at CER in the second quarter to $76 million.
Operational Update
Gross profit in the quarter under review declined 3.1% to $245.9 million. Gross margin contracted 283 basis points (bps) to 64.4%.
Adjusted operating income (excluding items like acquisition-related intangible amortization) rose 8.6% year over year to $68.9 million in the second quarter. Adjusted operating margin expanded 124 bps to 18%.
Financial Update
QIAGEN exited the second quarter of 2019 with cash and cash equivalents of $624.6 million, up from $552.9 million at the end of the first quarter. Year to date, net cash provided by operating activities was $82.5 million compared with $118 million a year ago. Moreover, the company reported year-to-date free cash flow of $51.5 million compared with $94.1 million a year ago.
As of Jun 19, 2019, QIAGEN had repurchased approximately $180 million of shares.
2019 Guidance
QIAGEN has lowered its 2019 guidance. Total net sales growth is expected in the range of about 5-6% at CER, compared to the earlier projection of 7-8% at CER. The Zacks Consensus Estimate for 2019 revenues is pegged at $1.56 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -8.45% due to these changes.
VGM Scores
Currently, Qiagen has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Qiagen has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Qiagen (QGEN) Down 8.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Qiagen (QGEN - Free Report) . Shares have lost about 8.7% 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 catalysts.
QIAGEN Misses Q2 Earnings Estimates, Lowers View
QIAGEN N.V.’s second-quarter 2019 adjusted earnings per share (EPS) were 33 cents, missing the Zacks Consensus Estimate by 2.9%. The figure remained flat year over year. At constant exchange rate or CER, the quarter’s adjusted EPS was 34 cents.
Revenues in Detail
Net sales at actual rates in the second quarter inched up 1% on a year-over-year basis to $381.6 million (up 5% at CER). However, the top line missed the Zacks Consensus Estimate by 11.4%.
Geographical Revenue Update
In the quarter under review, sales from the Americas (47% of revenues) totaled $181 million, up 1% on a reported basis (1% at CER). Revenues from Europe-Middle East-Africa (31% of revenues) declined 2% reportedly (up 5% at CER) to $118 million. Further, revenues from Asia-Pacific/Japan (22% of revenues) rose 8% year over year on a reported basis (up 12% at CER) to $83 million.
Segmental Details
As of the second quarter of 2019, QIAGEN has two major customer classes which are Molecular Diagnostics (that includes human healthcare including Precision Medicine and companion diagnostics) and Life Sciences (that includes Pharma and Academia/Applied Testing).
Molecular diagnostics (representing 49% of net sales) revenues were up 5% at CER to $188 million.
Life Sciences (51% of total revenues) reported revenues of $194 million, up 5% at CER. Sales derived from Applied Testing/Academia rose 5% at CER to $118 million. Pharma sales climbed 4% at CER in the second quarter to $76 million.
Operational Update
Gross profit in the quarter under review declined 3.1% to $245.9 million. Gross margin contracted 283 basis points (bps) to 64.4%.
Adjusted operating income (excluding items like acquisition-related intangible amortization) rose 8.6% year over year to $68.9 million in the second quarter. Adjusted operating margin expanded 124 bps to 18%.
Financial Update
QIAGEN exited the second quarter of 2019 with cash and cash equivalents of $624.6 million, up from $552.9 million at the end of the first quarter. Year to date, net cash provided by operating activities was $82.5 million compared with $118 million a year ago. Moreover, the company reported year-to-date free cash flow of $51.5 million compared with $94.1 million a year ago.
As of Jun 19, 2019, QIAGEN had repurchased approximately $180 million of shares.
2019 Guidance
QIAGEN has lowered its 2019 guidance. Total net sales growth is expected in the range of about 5-6% at CER, compared to the earlier projection of 7-8% at CER. The Zacks Consensus Estimate for 2019 revenues is pegged at $1.56 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -8.45% due to these changes.
VGM Scores
Currently, Qiagen has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Qiagen has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.