Don't Overlook Qiagen (QGEN) International Revenue Trends While Assessing the Stock

Zacks Equity Research

Mon, Nov 11, 2024, 6:15 AM 4 min read

Have you looked into how Qiagen (QGEN) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this diagnostic products maker, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.

While delving into QGEN's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.

For the quarter, the company's total revenue amounted to $501.87 million, experiencing an increase of 5.5% year over year. Next, we'll explore the breakdown of QGEN's international revenue to understand the importance of its overseas business operations.

A Closer Look at QGEN's Revenue Streams Abroad

Of the total revenue, $75.06 million came from Asia Pacific, Japan and Rest of World during the last fiscal quarter, accounting for 14.96%. This represented a surprise of -2.51% as analysts had expected the region to contribute $76.99 million to the total revenue. In comparison, the region contributed $76 million, or 15.31%, and $76 million, or 15.97%, to total revenue in the previous and year-ago quarters, respectively.

During the quarter, Europe, Middle East and Africa contributed $158.18 million in revenue, making up 31.52% of the total revenue. When compared to the consensus estimate of $159.11 million, this meant a surprise of -0.58%. Looking back, Europe, Middle East and Africa contributed $159 million, or 32.03%, in the previous quarter, and $145 million, or 30.47%, in the same quarter of the previous year.

International Revenue Predictions

It is projected by analysts on Wall Street that Qiagen will post revenues of $522.77 million for the ongoing fiscal quarter, an increase of 2.7% from the year-ago quarter. The expected contributions from Asia Pacific, Japan and Rest of World and Europe, Middle East and Africa to this revenue are 15.6% and 32.8%, translating into $81.38 million and $171.69 million, respectively.

For the entire year, the company's total revenue is forecasted to be $1.97 billion, which is an improvement of 0.3% from the previous year. The revenue contributions from different regions are expected as follows: Asia Pacific, Japan and Rest of World will contribute 15.5% ($306.3 million) and Europe, Middle East and Africa 32.6% ($642.48 million) to the total revenue.

The Bottom Line

Qiagen's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.

In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

At present, Qiagen holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Reviewing Qiagen's Recent Stock Price Trends

Over the past month, the stock has seen a decline of 0.4% in its value, whereas the Zacks S&P 500 composite has posted an increase of 4.4%. The Zacks Medical sector, Qiagen's industry group, has descended 1.4% over the identical span. In the past three months, there's been a decline of 6.3% in the company's stock price, against a rise of 13.1% in the S&P 500 index. The broader sector has declined by 2% during this interval.

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