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Is QIAGEN (QGEN) a Good Investment Now? Key Factors to Note
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QIAGEN N.V. (QGEN - Free Report) is poised to grow in the upcoming quarters, backed by its robust progress in expanding the test menu options. The company’s expansive Molecular Diagnostics portfolio continues to be bolstered by several innovations. In addition, sound financial stability instills optimism.
Meanwhile, QIAGEN’s operations are vulnerable to macroeconomic volatilities, which can adversely affect its financial results. Any adverse developments in the company’s commercial partnerships may impact its sales and competitive position.
In the past year, this Zacks Rank #2 (Buy) stock has declined 10.4% compared with a 4% decrease in the industry. The S&P 500 composite has witnessed a 23.4% rise in the said time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $9.71 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters, delivering an average surprise of 1.7%.
Let’s delve deeper.
Upsides
Progress in Test Menu Expansion: To support internal growth, QIAGEN heavily invests in research and development for the menu expansion of its key platforms. The FDA clearance for the NeuMoDx CT/NG Assay 2.0 in January 2024 expands the test menu for NeuMoDx Molecular Systems in the United States and further complements the company’s broad menu offered in Europe and other countries.
Additionally, 2023 marked a series of numerous developments, such as the introduction of TissueLyser III and RNeasy PowerMax Soil Pro Kit, new kits and a software update for its QIAcuity digital PCR systems. The company expanded its growing portfolio of microbiome solutions with the comprehensive Microbiome WGS SeqSets Sample to Insight workflow.
Image Source: Zacks Investment Research
QIAGEN launched the QuantiFERON-EBV RUO (Research Use Only) assay, which facilitates the research of cell-mediated immune response to Epstein-Barr virus. In collaboration with DiaSorin, the company developed the LIAISON LymeDetect test utilizing the QuantiFERON technology to detect early Lyme Borreliosis infections. Furthermore, QIAGEN extended its eco-friendly QIAwave product line with the QIAwave RNeasy Plus Mini Kit and the QIAwave DNA/RNA Mini Kit.
Huge Potential in Molecular Diagnostics: QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. In the first quarter of 2024, the 5% CER growth in the Diagnostic Solutions product group underscored the strength and resilience of the company’s portfolio mix. The QuantiFERON TB test and the QIAstat syndromic testing system achieved double-digit sales growth amid solid placement.
The QuantiFERON TB test continued its growth trajectory from the conversion of tuberculin skin testing to modern blood testing and finished another quarter with sales higher than $100 million. Moreover, QIAGEN’s recent team-up with the International Panel Physicians Association promotes the use of IGRA (Interferon Gamma Release Assay) technologies like QuantiFERON for screening immigrants as young as two years old.
The new QIAseq panel for whole genome sequencing of tuberculosis samples is a major development in the global fight against TB. Further, sales of QIAstat diagnostic surged 21% at CER in the first quarter on ongoing instrument placement trends and significant growth in consumables for both respiratory and non-respiratory panels.
Favorable Solvency: QIAGEN demonstrated strong financial stability, exiting the first quarter of 2024 with cash and cash equivalents and short-term investments of $893.1 million and a current debt of $591 million. The long-term debt (net of the current portion) was $912.8 million compared to $921.8 million at 2023-end. Meanwhile, the company had a times interest earned ratio of 9.6, a 0.5% improvement from the fourth quarter of 2023.
Downsides
Macro Headwinds Hamper Global Sales: QIAGEN currently markets products in more than 100 countries. The wide international presence exposes it to diverse risks, including economic volatility, weak legal systems, political instabilities as well as government actions affecting the flow of goods and currency. In the first quarter, the company’s net sales declined 5% compared with the first quarter of 2023 due to challenging macro demand trends. Sales in China declined at a double-digit CER rate, reflecting the macro challenges in this market that are likely to stay for a while.
Reliance on Commercial Relationships: QGEN presently markets its products in more than 130 countries, directly or indirectly, through commercial partners and distributors. Its personalized Healthcare business involves collaboration with pharmaceutical and biotechnology companies to co-develop companion diagnostics for their drugs.
The sales of companion diagnostics depend to a high degree on the commercial success of the related medicines for which the tests have been designed to be used for determining their use in patients. Additionally, there is a risk of losing these partnerships or facing competition from partners developing competing products.
Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for QIAGEN’s 2024 earnings per share has increased to $2.12 from $2.09 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.98 billion. This suggests an increase of 0.9% from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , Globus Medical (GMED - Free Report) and Haemonetics (HAE - Free Report) .
Hims & Hers Health’s earnings are expected to surge 281.8% in 2024 compared with the industry’s 18.8%. HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. Its shares have surged 147.3% against the industry’s 23% decline in the past year.
Globus Medical, sporting a Zacks Rank #1 at present, has an estimated 2024 earnings growth rate of 21.6% compared with the industry’s 11.7%. Shares of GMED have rallied 18.7% compared with the industry’s 0.5% rise over the past year.
GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 10.8%. In the last reported quarter, it delivered an earnings surprise of 30.9%.
Haemonetics, carrying a Zacks Rank #2 at present, has an estimated fiscal 2025 earnings growth rate of 15.4% compared with the industry’s 12.5%. Shares of HAE have fallen 1.8% compared with the industry’s 1.8% decline over the past year.
HAE’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 13.2%. In the last reported quarter, it delivered an earnings surprise of 2.3%.
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Is QIAGEN (QGEN) a Good Investment Now? Key Factors to Note
QIAGEN N.V. (QGEN - Free Report) is poised to grow in the upcoming quarters, backed by its robust progress in expanding the test menu options. The company’s expansive Molecular Diagnostics portfolio continues to be bolstered by several innovations. In addition, sound financial stability instills optimism.
Meanwhile, QIAGEN’s operations are vulnerable to macroeconomic volatilities, which can adversely affect its financial results. Any adverse developments in the company’s commercial partnerships may impact its sales and competitive position.
In the past year, this Zacks Rank #2 (Buy) stock has declined 10.4% compared with a 4% decrease in the industry. The S&P 500 composite has witnessed a 23.4% rise in the said time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $9.71 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters, delivering an average surprise of 1.7%.
Let’s delve deeper.
Upsides
Progress in Test Menu Expansion: To support internal growth, QIAGEN heavily invests in research and development for the menu expansion of its key platforms. The FDA clearance for the NeuMoDx CT/NG Assay 2.0 in January 2024 expands the test menu for NeuMoDx Molecular Systems in the United States and further complements the company’s broad menu offered in Europe and other countries.
Additionally, 2023 marked a series of numerous developments, such as the introduction of TissueLyser III and RNeasy PowerMax Soil Pro Kit, new kits and a software update for its QIAcuity digital PCR systems. The company expanded its growing portfolio of microbiome solutions with the comprehensive Microbiome WGS SeqSets Sample to Insight workflow.
Image Source: Zacks Investment Research
QIAGEN launched the QuantiFERON-EBV RUO (Research Use Only) assay, which facilitates the research of cell-mediated immune response to Epstein-Barr virus. In collaboration with DiaSorin, the company developed the LIAISON LymeDetect test utilizing the QuantiFERON technology to detect early Lyme Borreliosis infections. Furthermore, QIAGEN extended its eco-friendly QIAwave product line with the QIAwave RNeasy Plus Mini Kit and the QIAwave DNA/RNA Mini Kit.
Huge Potential in Molecular Diagnostics: QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. In the first quarter of 2024, the 5% CER growth in the Diagnostic Solutions product group underscored the strength and resilience of the company’s portfolio mix. The QuantiFERON TB test and the QIAstat syndromic testing system achieved double-digit sales growth amid solid placement.
The QuantiFERON TB test continued its growth trajectory from the conversion of tuberculin skin testing to modern blood testing and finished another quarter with sales higher than $100 million. Moreover, QIAGEN’s recent team-up with the International Panel Physicians Association promotes the use of IGRA (Interferon Gamma Release Assay) technologies like QuantiFERON for screening immigrants as young as two years old.
The new QIAseq panel for whole genome sequencing of tuberculosis samples is a major development in the global fight against TB. Further, sales of QIAstat diagnostic surged 21% at CER in the first quarter on ongoing instrument placement trends and significant growth in consumables for both respiratory and non-respiratory panels.
Favorable Solvency: QIAGEN demonstrated strong financial stability, exiting the first quarter of 2024 with cash and cash equivalents and short-term investments of $893.1 million and a current debt of $591 million. The long-term debt (net of the current portion) was $912.8 million compared to $921.8 million at 2023-end. Meanwhile, the company had a times interest earned ratio of 9.6, a 0.5% improvement from the fourth quarter of 2023.
Downsides
Macro Headwinds Hamper Global Sales: QIAGEN currently markets products in more than 100 countries. The wide international presence exposes it to diverse risks, including economic volatility, weak legal systems, political instabilities as well as government actions affecting the flow of goods and currency. In the first quarter, the company’s net sales declined 5% compared with the first quarter of 2023 due to challenging macro demand trends. Sales in China declined at a double-digit CER rate, reflecting the macro challenges in this market that are likely to stay for a while.
Reliance on Commercial Relationships: QGEN presently markets its products in more than 130 countries, directly or indirectly, through commercial partners and distributors. Its personalized Healthcare business involves collaboration with pharmaceutical and biotechnology companies to co-develop companion diagnostics for their drugs.
The sales of companion diagnostics depend to a high degree on the commercial success of the related medicines for which the tests have been designed to be used for determining their use in patients. Additionally, there is a risk of losing these partnerships or facing competition from partners developing competing products.
Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for QIAGEN’s 2024 earnings per share has increased to $2.12 from $2.09 in the past 30 days.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.98 billion. This suggests an increase of 0.9% from the year-ago reported number.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Hims & Hers Health (HIMS - Free Report) , Globus Medical (GMED - Free Report) and Haemonetics (HAE - Free Report) .
Hims & Hers Health’s earnings are expected to surge 281.8% in 2024 compared with the industry’s 18.8%. HIMS’ earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 79.2%. Its shares have surged 147.3% against the industry’s 23% decline in the past year.
HIMS sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical, sporting a Zacks Rank #1 at present, has an estimated 2024 earnings growth rate of 21.6% compared with the industry’s 11.7%. Shares of GMED have rallied 18.7% compared with the industry’s 0.5% rise over the past year.
GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 10.8%. In the last reported quarter, it delivered an earnings surprise of 30.9%.
Haemonetics, carrying a Zacks Rank #2 at present, has an estimated fiscal 2025 earnings growth rate of 15.4% compared with the industry’s 12.5%. Shares of HAE have fallen 1.8% compared with the industry’s 1.8% decline over the past year.
HAE’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 13.2%. In the last reported quarter, it delivered an earnings surprise of 2.3%.