Yahoo Finance QIAGEN's (QGEN) Expanded Test Menu Aids, FX Woe Lingers
QIAGEN’s QGEN business is expected to get a boost from its growing molecular diagnostic market and expanded test menu. Yet, tough competitive landscape and foreign exchange headwinds are major downsides. The stock carries a Zacks Rank #3 (Hold).
In the past six months, QIAGEN has outperformed the industry it belongs to. The stock has gained 3.1% compared with the industry’s 0.6% rise.
QIAGEN ended fourth-quarter 2022 with better-than-expected earnings and revenues. The ongoing double-digit sales growth in the non-COVID product portfolio, a high level of profitability and strong cash flow are the major upsides. The QIAcuity digital PCR system delivered solid double-digit CER growth for fiscal 2022, supported by the launch of new assays for biopharma applications. Further, QuantiFERON-TB also registered a solid double-digit CER growth in 2022, led by continued conversion of the latent TB market from the traditional skin test.
Molecular diagnostic solutions contributed about 30% to sales in the fourth quarter of 2022. The key driver of the growth was the QuantiFERON franchise. Sales of QuantiFERON TB test rose 15% at CER in the fourth quarter on double-digit gains in all regions. In terms of QIAstat-Dx, the company continued to witness increased demand for system placements and growing consumables usage around the world.
QIAGEN is progressing well with its testing menu expansion strategy.
In January 2023, QIAGEN launched EZ2 Connect MDx for use in diagnostic laboratories. This makes the in-vitro devices (IVD) platform for automated sample processing available for widescale use 18 months after being made available for research.
The same month, QIAGEN announced an enhanced QIAGEN CLC Genomics Workbench Premium that removes the data-analysis bottleneck of next-generation sequencing by adding game-changing speed to analyze and interpret whole genome sequencing, whole exome sequencing and large panel sequencing data.
QIAGEN N.V. Price
QIAGEN N.V. price | QIAGEN N.V. Quote
On the flip side, in the fourth quarter of 2022, on a year-over-year basis, earnings and sales both declined. The massive decline in COVID-19 product sales and severe foreign exchange headwind impacted overall performance.
QIAGEN currently markets products in more than 100 countries. In the quarter under review, revenues from Europe, the Middle East and Africa fell 23%, reportedly due to the sharp decline in COVID testing trends. Revenues from Asia-Pacific/Japan fell 16% year over year on a reported basis. Sales in China declined by about 7% in the fourth quarter.
Escalating costs and the contraction of gross margin operating margin are concerns.
Total debt at the end of the fourth quarter was much higher than the quarter-end cash and cash equivalent and short-term investments level, indicating a weak solvency position.
A series of current macroeconomic issues, including supply chain disruptions, energy needs and rising inflation, continue to hamper the company’s performance. Apart from this, stiff competition from firms offering pre-analytical solutions and other products used by QIAGEN’s customers persists. Also, the company is exposed to risks of foreign currency movement.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. HOLX, Henry Schein, Inc. HSIC and Avanos Medical, Inc. AVNS.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has inched up 3.1% against the industry’s 16% decline in the past year.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 7.7% compared with the industry’s 5.5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.8% compared with the industry’s 15.9% decline in the past year.
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Hologic, Inc. (HOLX) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
QIAGEN N.V. (QGEN) : Free Stock Analysis Report
AVANOS MEDICAL, INC. (AVNS) : Free Stock Analysis Report
