QIAGEN N.V.’s QGEN third-quarter 2024 adjusted earnings per share (EPS) were 57 cents, 58 cents at the constant exchange rate (CER). The reported figure increased 14% from the 2023 comparable figure and topped the Zacks Consensus Estimate by 5.6%.
The adjustment excludes the impact of certain non-recurring items, such as business integration, acquisition and restructuring-related expenses, purchased intangible amortization expenses and non-cash interest expense charges, among others.
On a GAAP basis, EPS in the third quarter was 44 cents compared with 34 cents in the year-ago period.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Yesterday, shares of QGEN finished the session at $43.87, a 0.2% drop from the previous close. Following the earnings announcement, the stock price remained unchanged in after-hours trading.
QGEN’s Q3 Revenues
Quarterly net sales were up 5.5% year over year to $501.9 million (up 6% at CER). The top line beat the Zacks Consensus Estimate by 2.3%. Sales at CER were $502 million, ahead of the outlook of at least $495 million.
QGEN’s Q3 Segmental Details
QIAGEN reports through four product groups — Sample technologies, Diagnostic solutions, PCR / Nucleic acid amplification, Genomics / NGS and Other
Sample technologies revenues were up 1% on a reported basis (up 1% at CER) to $162 million. Our model projected $160.4 million for this segment.
Diagnostic solutions revenues were up 10% on a reported basis (same at CER) to $197 million. Our model projected $190.2 million for this segment.
Within this, QuantiFERON revenues were up 10% at CER, while QIAstat-Dx revenues surged 40% at CER. Sales from NeuMoDx fell 10% at CER, while Other sales remained in line with the prior-year quarter.
PCR / Nucleic acid amplificationrevenues increased 9% on a reported basis (same at CER) to $74 million. Our model projected $68 million for this segment.
Genomics / NGS revenues were $55 million, consistent with the prior-year quarter, both on a reported basis and at CER. Our model projected $64.8 million for this segment.
Other revenues were $14 million, down 3% year over year on a reported basis (up 2% at CER). Our model projected $16.8 million for this segment.
In the third quarter, the company’s cost of sales (excluding the amortization of acquisition-related intangibles) increased 11.1%. The adjusted gross profit fell 0.5% year over year to $316.1 million. Meanwhile, the adjusted gross margin contracted 374 basis points (bps) to 62.9%.
Sales and marketing expenses fell 0.2% year over year to $111.3 million. R&D expenses of $44.4 million were down 0.2% year over year. G&A expenses declined 2.6% year over year to $29 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring, integration and others) increased 1.2% year over year to $131 million. Meanwhile, the adjusted operating margin contracted 111 bps to 26.1%.
QGEN’s Financial Update
QIAGEN exited the third quarter of 2024 with cash, cash equivalents and short-term investments of $1.5 billion compared with $1.1 billion at the end of the second quarter.
The long-term debt (net of the current portion) was $1.36 billion at the end of the third quarter of 2024 compared with $908.9 million at the end of the second quarter.
The cumulative net cash provided by operating activities at the end of the third quarter of 2024 was $482 million compared with $308.1 million in the year-ago period.
QIAGEN’s Outlook for 2024 and Q4
Full-year net sales are expected to be at least $1.985 billion (unchanged). 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 $1.97 billion.
The adjusted EPS is expected to be at least $2.19 at CER (earlier $2.16 CER). The Zacks Consensus Estimate is pegged at $2.15.
For the fourth quarter, the company estimates net sales of at least $520 million at CER compared with $509 million in the fourth quarter of 2023. The Zacks Consensus Estimate is pegged at $522.8 million.
The adjusted EPS is expected to be at least 60 cents at CER compared with 55 cents in the fourth quarter of 2023. The Zacks Consensus Estimate is pegged at 59 cents.
Our Take on QGEN
QIAGEN delivered better-than-expected earnings and revenues in the fourth quarter of 2024. In a challenging macro environment, the company continues to deliver sales growth quarter after quarter, along with market share gains and operational efficiency due to a differentiated portfolio. The raised 2024 EPS guidance instills optimism.
Some of the promising developments in QIAGEN’s portfolio include the launch of 100 new assays for the QIAcuity digital PCR system, along with the new QIAcuityDx version for clinical applications. The company expanded the utility of the QIAstat-Dx system beyond syndromic testing through new pharma partnerships with AstraZeneca and Eli Lilly, advancing toward its 2028 targets and commitment to solid profitable growth.
Meanwhile, the contraction of both margins in the quarter is discouraging.
QGEN’s Zacks Rank and Key Picks
QIAGEN currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Quest Diagnostics DGX, Intuitive Surgical ISRG and Boston Scientific Corporation BSX.
Quest Diagnostics reported third-quarter 2024 adjusted earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate by 1.8%. Revenues of $2.49 billion beat the consensus mark by 3.4%. DGX carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DGX’s 2024 earnings are expected to surge 2.1%. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.3%.
Intuitive Surgical, currently carrying a Zacks Rank #2, posted a third-quarter 2024 EPS of $1.84, beating the Zacks Consensus Estimate by 11.5%. Revenues of $2.04 billion surpassed the Zacks Consensus Estimate by 1.2%.
ISRG has an estimated 2024 earnings growth rate of 20.1% compared with the industry’s 13.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.9%.
Boston Scientific Corporation, currently carrying a Zacks Rank #2, reported third-quarter 2024 adjusted earnings of 63 cents per share, which surpassed the Zacks Consensus Estimate by 8.6%. Revenues of $4.21 billion beat the Zacks Consensus Estimate by 4.5%.
BSX has an estimated 2024 earnings growth rate of 17.6% compared with the industry’s 11.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.2%.
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