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QIAGEN (QGEN) Q1 Earnings Surpass Estimates, 2022 View Up
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QIAGEN N.V.’s (QGEN - Free Report) first-quarter 2022 adjusted earnings per share (EPS) were 80 cents (83 cents at constant exchange rate or CER), up 21.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 12.7%.
Notably, the bottom line exceeded the company’s first-quarter guidance of at least 72 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition, restructuring-related expenses, and purchased intangibles amortization expenses, among others.
GAAP EPS for the quarter was 67 cents per share, up 19.6% year over year.
Revenues in Detail
Net sales in the first quarter rose 10.8% on a year-over-year basis to $628.4 million (up 15% at CER). The top line exceeded the Zacks Consensus Estimate by 6.5%. Top-line growth also exceeded the company’s first-quarter net sales expectation of 7% CER growth.
The first-quarter sales were driven by considerable CER growth in the non-COVID product portfolio and enhanced sales of COVID-19 testing and surveillance products.
Geographical Revenue Update
In the quarter under review, sales from the Americas (40% of sales) totaled $253 million, up 4% on a reported basis (up 4% at CER).
Revenues from Europe, Middle East and Africa (40% of sales) rose 14% reportedly (up 24% at CER) to $249 million.
Further, revenues from Asia-Pacific/ Japan (20% of sales) rose 21% year over year on a reported basis (up 25% at CER) to $126 million.
Segmental Details
As of the first quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 57% of net sales) revenues were up 28% on a reported basis (up 35% at CER) to $357 million.
Life Sciences (43% of total revenues) reported revenues of $272 million, down 6% on a reported basis (down 3% at CER).
Operational Update
Adjusted gross profit in the quarter under review rose 10.8% to $430.3 million. Meanwhile, adjusted gross margin expanded 3 basis points (bps) to 68.5% due to a 10.7% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $198.1 million.
Sales and marketing expenses of QIAGEN rose 4.2% to $118.5 million year over year. Research and development expenses contracted 2.2% year over year to $46.4 million, whereas general and administrative expenses rose 1.6% year over year to $34.4 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) increased 19.6% year over year to $231 million in the first quarter. Adjusted operating margin, however, expanded 270 bps to 36.8%.
Financial Update
QIAGEN exited first-quarter 2022 with cash and cash equivalents, and short-term investments of $1.23 billion, up from $1.07 billion at the end of 2021. Long-term debt was $1.47 billion in first-quarter 2022, up from $1.09 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of first-quarter 2022 was $207.4 million compared with $128.6 million in the year-ago period.
Guidance
QIAGEN has updated its outlook for full-year 2022, reaffirming its previous goal of double-digit CER sales growth from the non-COVID product groups while assuming a significant year-on-year decline in the COVID-19 product group sales based on the anticipated volatile pandemic trends this year. The updated outlook also considers the current inflation and other macroeconomic trends.
Full-year net sales are expected to be at least $2.12 billion at CER (up from the previously projected $2.07 billion) compared with $2.25 billion in 2021. The Zacks Consensus Estimate for the metric is pegged at $2.07 billion.
Adjusted EPS for 2022 is expected to be at least $2.14 at CER (up from the prior projection of $2.05) compared with $2.65 in 2021. The Zacks Consensus Estimate for adjusted EPS is pegged at $2.05.
For the second quarter, the company expects net sales to grow at least $510 million at CER compared with $567.2 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $485.4 million.
Adjusted EPS is expected to be at least 46 cents at CER compared with 67 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 44 cents.
Our Take
QIAGEN exited the first quarter of 2022 on a bullish note, with better-than-expected revenues and earnings. The company registered solid performance in its non-COVID product portfolio for the quarter under review. Robust revenue growth across all geographies and within the Molecular Diagnostics arm buoys optimism. An increase in short-term cash level appears promising. Expansion of both margins is another upside. Further, the raised full-year guidance for net sales and adjusted EPS is indicative of this growth momentum continuing.
However, the year-over-year decline in revenues at the Life Sciences arm raises apprehension. A significant increase in long-term debt level is discouraging. Escalating operating costs do not bode well for the company either. The ongoing inflationary pressure and other macroeconomic headwinds, including the current conflict between Russia and Ukraine, continue to pose challenges.
Zacks Rank and Other Key Picks
QIAGEN currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Teleflex Incorporated (TFX - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Abiomed, Inc. .
Teleflex, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $2.88, which beat the Zacks Consensus Estimate by 5.5%. Revenues of $641.7 million outpaced the consensus mark by 1.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teleflex has an estimated long-term growth rate of 13%. TFX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.1%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Abiomed reported fourth-quarter fiscal 2022 adjusted EPS of $1.16, which surpassed the Zacks Consensus Estimate by 6.4%. Revenues of $269.9 million outpaced the Zacks Consensus Estimate by 1.3%. It currently has a Zacks Rank #2.
Abiomed has an estimated long-term growth rate of 20%. ABMD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 7.9%.
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QIAGEN (QGEN) Q1 Earnings Surpass Estimates, 2022 View Up
QIAGEN N.V.’s (QGEN - Free Report) first-quarter 2022 adjusted earnings per share (EPS) were 80 cents (83 cents at constant exchange rate or CER), up 21.2% year over year. Moreover, the figure surpassed the Zacks Consensus Estimate by 12.7%.
Notably, the bottom line exceeded the company’s first-quarter guidance of at least 72 cents at CER.
The adjustment excludes the impact of certain non-recurring items like business integration, acquisition, restructuring-related expenses, and purchased intangibles amortization expenses, among others.
GAAP EPS for the quarter was 67 cents per share, up 19.6% year over year.
Revenues in Detail
Net sales in the first quarter rose 10.8% on a year-over-year basis to $628.4 million (up 15% at CER). The top line exceeded the Zacks Consensus Estimate by 6.5%. Top-line growth also exceeded the company’s first-quarter net sales expectation of 7% CER growth.
The first-quarter sales were driven by considerable CER growth in the non-COVID product portfolio and enhanced sales of COVID-19 testing and surveillance products.
Geographical Revenue Update
In the quarter under review, sales from the Americas (40% of sales) totaled $253 million, up 4% on a reported basis (up 4% at CER).
Revenues from Europe, Middle East and Africa (40% of sales) rose 14% reportedly (up 24% at CER) to $249 million.
QIAGEN N.V. Price, Consensus and EPS Surprise
QIAGEN N.V. price-consensus-eps-surprise-chart | QIAGEN N.V. Quote
Further, revenues from Asia-Pacific/ Japan (20% of sales) rose 21% year over year on a reported basis (up 25% at CER) to $126 million.
Segmental Details
As of the first quarter of 2022, QIAGEN had two major customer classes – Molecular Diagnostics and Life Sciences.
Molecular Diagnostics (representing 57% of net sales) revenues were up 28% on a reported basis (up 35% at CER) to $357 million.
Life Sciences (43% of total revenues) reported revenues of $272 million, down 6% on a reported basis (down 3% at CER).
Operational Update
Adjusted gross profit in the quarter under review rose 10.8% to $430.3 million. Meanwhile, adjusted gross margin expanded 3 basis points (bps) to 68.5% due to a 10.7% rise in total cost of sales (adjusting for acquisition-related intangible amortization) to $198.1 million.
Sales and marketing expenses of QIAGEN rose 4.2% to $118.5 million year over year. Research and development expenses contracted 2.2% year over year to $46.4 million, whereas general and administrative expenses rose 1.6% year over year to $34.4 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring and integration, asset impairment) increased 19.6% year over year to $231 million in the first quarter. Adjusted operating margin, however, expanded 270 bps to 36.8%.
Financial Update
QIAGEN exited first-quarter 2022 with cash and cash equivalents, and short-term investments of $1.23 billion, up from $1.07 billion at the end of 2021. Long-term debt was $1.47 billion in first-quarter 2022, up from $1.09 billion at the end of 2021.
Cumulative net cash flow from operating activities at the end of first-quarter 2022 was $207.4 million compared with $128.6 million in the year-ago period.
Guidance
QIAGEN has updated its outlook for full-year 2022, reaffirming its previous goal of double-digit CER sales growth from the non-COVID product groups while assuming a significant year-on-year decline in the COVID-19 product group sales based on the anticipated volatile pandemic trends this year. The updated outlook also considers the current inflation and other macroeconomic trends.
Full-year net sales are expected to be at least $2.12 billion at CER (up from the previously projected $2.07 billion) compared with $2.25 billion in 2021. The Zacks Consensus Estimate for the metric is pegged at $2.07 billion.
Adjusted EPS for 2022 is expected to be at least $2.14 at CER (up from the prior projection of $2.05) compared with $2.65 in 2021. The Zacks Consensus Estimate for adjusted EPS is pegged at $2.05.
For the second quarter, the company expects net sales to grow at least $510 million at CER compared with $567.2 million in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $485.4 million.
Adjusted EPS is expected to be at least 46 cents at CER compared with 67 cents in the year-ago quarter. The Zacks Consensus Estimate for adjusted EPS is pegged at 44 cents.
Our Take
QIAGEN exited the first quarter of 2022 on a bullish note, with better-than-expected revenues and earnings. The company registered solid performance in its non-COVID product portfolio for the quarter under review. Robust revenue growth across all geographies and within the Molecular Diagnostics arm buoys optimism. An increase in short-term cash level appears promising. Expansion of both margins is another upside. Further, the raised full-year guidance for net sales and adjusted EPS is indicative of this growth momentum continuing.
However, the year-over-year decline in revenues at the Life Sciences arm raises apprehension. A significant increase in long-term debt level is discouraging. Escalating operating costs do not bode well for the company either. The ongoing inflationary pressure and other macroeconomic headwinds, including the current conflict between Russia and Ukraine, continue to pose challenges.
Zacks Rank and Other Key Picks
QIAGEN currently carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space that have announced quarterly results are Teleflex Incorporated (TFX - Free Report) , UnitedHealth Group Incorporated (UNH - Free Report) and Abiomed, Inc. .
Teleflex, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $2.88, which beat the Zacks Consensus Estimate by 5.5%. Revenues of $641.7 million outpaced the consensus mark by 1.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teleflex has an estimated long-term growth rate of 13%. TFX’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.1%.
UnitedHealth, having a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.
UnitedHealth has an estimated long-term growth rate of 14.8%. UNH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 3.7%.
Abiomed reported fourth-quarter fiscal 2022 adjusted EPS of $1.16, which surpassed the Zacks Consensus Estimate by 6.4%. Revenues of $269.9 million outpaced the Zacks Consensus Estimate by 1.3%. It currently has a Zacks Rank #2.
Abiomed has an estimated long-term growth rate of 20%. ABMD’s earnings surpassed estimates in the trailing four quarters, the average surprise being 7.9%.