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QIAGEN (QGEN) Q1 Earnings to Gain on Growing Test Kit Sales
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QIAGEN N.V. (QGEN - Free Report) is set to report first-quarter 2020 results on May 6, after the closing bell.
In the last reported quarter, the company delivered a positive earnings surprise of 9.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and lagged in one, the average positive beat being 3.2%.
Let’s take a look at how things are shaping up prior to this announcement.
Factors at Play
With strong demand for testing solutions, QIAGEN is expected to mitigate the impacts of the coronavirus-led economic doldrums, which have been plaguing the healthcare industry all over the globe.
Meanwhile, let us delve deeper into how the company’s core business segments have progressed during the first quarter.
The company’s molecular diagnostics customer class has been seeing declining sales in companion diagnostic co-development project for pharma companies. In the last reported quarter, this factor affected the company’s top line significantly.
Further, over the past several months, the company’s Japan business has been seeing a persistent slowdown in orders from distributors. China too has been witnessing declining sales from the discontinuation of China GeneReader joint venture as well as slowdown in distributor payments from customers and hospital laboratories.
Further, the current global situation is likely to have affected the company’s Asia Pacific and Japan revenues in the first quarter. This reflects in the company’s expectation of lower product demand in the preliminary results.
On a positive note, QIAGEN has been ramping up its fight against the coronavirus pandemic since late February by launching and shipping its newly-developed QIAstat-Dx Respiratory Panel 2019-nCoV test kit. The company even received CE mark for its QIAstat-Dx Respiratory SARS-CoV-2 Panel test for detecting the SARS-CoV-2. Notably, the test kit will be sold as an in-vitro diagnostic in Europe.
Per the preliminary results, QIAGEN’s first-quarter 2020 top line is likely to have benefitted from robust demand for solutions used in COVID-19 pandemic testing. However, weaker customer demand trends in other product areas are likely to have dented overall revenues.
Further, in February, the company launched therascreen PIK3CA RGQ PCR Kit in Europe to identify breast cancer patients with a PIK3CA mutation, following its CE mark. This is likely to have contributed to the top line.
The Zacks Consensus Estimate for Molecular Diagnostics first-quarter revenues is pegged at $170 million, suggesting a 14.1% decline from the last reported quarter.
Life Sciences
For this segment, QIAGEN is expected to have continued to reap benefits of rise in consumables and related revenues and expansion in the universal next-generation sequencing portfolio.
Preliminary Results
QIAGEN expects an adverse impact on first-quarter results of currency movement, based on actual exchange rates as of Mar 31, 2020. The impact has been expected to be of two percentage points on net sales at actual rates. It is also projected to result in an adverse impact of up to a penny per share on adjusted earnings per share (EPS).
Per the prelim announcement, the company expects adjusted EPS of 34-35 cents at constant exchange rate (CER). This compares with the earlier provided guidance of 28-29 cents at CER.
For the to-be-reported quarter, QIAGEN expects a rise in net sales of 9% at CER, exceeding the guidance of 2-3% CER growth.
The Estimate Picture
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $325 million, indicating a decline of 6.9% from the year-ago figure. The same for earnings per share is pinned at 35 cents, suggesting growth of 29.6%.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has good chances of beating estimates. However, this is not the case here as you can see:
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Earnings ESP: QIAGEN has an Earnings ESP of -26.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Aphria Inc. , carrying a Zacks Rank of 2 at present, has an Earnings ESP of +35.71%.
ViewRay, Inc. is a Zacks #2 Ranked stock with an Earnings ESP of +4.26%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
QIAGEN (QGEN) Q1 Earnings to Gain on Growing Test Kit Sales
QIAGEN N.V. (QGEN - Free Report) is set to report first-quarter 2020 results on May 6, after the closing bell.
In the last reported quarter, the company delivered a positive earnings surprise of 9.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and lagged in one, the average positive beat being 3.2%.
Let’s take a look at how things are shaping up prior to this announcement.
Factors at Play
With strong demand for testing solutions, QIAGEN is expected to mitigate the impacts of the coronavirus-led economic doldrums, which have been plaguing the healthcare industry all over the globe.
Meanwhile, let us delve deeper into how the company’s core business segments have progressed during the first quarter.
QIAGEN N.V. Price and EPS Surprise
QIAGEN N.V. price-eps-surprise | QIAGEN N.V. Quote
Molecular Diagnostics
The company’s molecular diagnostics customer class has been seeing declining sales in companion diagnostic co-development project for pharma companies. In the last reported quarter, this factor affected the company’s top line significantly.
Further, over the past several months, the company’s Japan business has been seeing a persistent slowdown in orders from distributors. China too has been witnessing declining sales from the discontinuation of China GeneReader joint venture as well as slowdown in distributor payments from customers and hospital laboratories.
Further, the current global situation is likely to have affected the company’s Asia Pacific and Japan revenues in the first quarter. This reflects in the company’s expectation of lower product demand in the preliminary results.
On a positive note, QIAGEN has been ramping up its fight against the coronavirus pandemic since late February by launching and shipping its newly-developed QIAstat-Dx Respiratory Panel 2019-nCoV test kit. The company even received CE mark for its QIAstat-Dx Respiratory SARS-CoV-2 Panel test for detecting the SARS-CoV-2. Notably, the test kit will be sold as an in-vitro diagnostic in Europe.
Per the preliminary results, QIAGEN’s first-quarter 2020 top line is likely to have benefitted from robust demand for solutions used in COVID-19 pandemic testing. However, weaker customer demand trends in other product areas are likely to have dented overall revenues.
Further, in February, the company launched therascreen PIK3CA RGQ PCR Kit in Europe to identify breast cancer patients with a PIK3CA mutation, following its CE mark. This is likely to have contributed to the top line.
The Zacks Consensus Estimate for Molecular Diagnostics first-quarter revenues is pegged at $170 million, suggesting a 14.1% decline from the last reported quarter.
Life Sciences
For this segment, QIAGEN is expected to have continued to reap benefits of rise in consumables and related revenues and expansion in the universal next-generation sequencing portfolio.
Preliminary Results
QIAGEN expects an adverse impact on first-quarter results of currency movement, based on actual exchange rates as of Mar 31, 2020. The impact has been expected to be of two percentage points on net sales at actual rates. It is also projected to result in an adverse impact of up to a penny per share on adjusted earnings per share (EPS).
Per the prelim announcement, the company expects adjusted EPS of 34-35 cents at constant exchange rate (CER). This compares with the earlier provided guidance of 28-29 cents at CER.
For the to-be-reported quarter, QIAGEN expects a rise in net sales of 9% at CER, exceeding the guidance of 2-3% CER growth.
The Estimate Picture
The Zacks Consensus Estimate for first-quarter 2020 revenues is pegged at $325 million, indicating a decline of 6.9% from the year-ago figure. The same for earnings per share is pinned at 35 cents, suggesting growth of 29.6%.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has good chances of beating estimates. However, this is not the case here as you can see:
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Earnings ESP: QIAGEN has an Earnings ESP of -26.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Exact Sciences Corporation (EXAS - Free Report) currently carries a Zacks Rank of 2 and has an Earnings ESP of +2.28%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aphria Inc. , carrying a Zacks Rank of 2 at present, has an Earnings ESP of +35.71%.
ViewRay, Inc. is a Zacks #2 Ranked stock with an Earnings ESP of +4.26%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>