QIAGEN N.V. QGEN recently announced preliminary revenues and adjusted earnings per share (EPS) results for the second quarter of 2020 on Jul 9. The full second-quarter 2020 results are scheduled to release on Aug 4.
Following the announcement, the stock gained 1.7% to close at $45.31 as of Jul 10.
Results in Details
QIAGEN expects unfavorable currency movement to impact second-quarter results, based on exchange rates as of Jun 30, 2020. The impact is anticipated to be in the range of 2-3% points on net revenues at actual rates, thereby leading to a negative impact of around a cent on adjusted EPS.
Per the prelim announcement, adjusted EPS of 55-56 cents constant exchange rates (CER), suggests an improvement of almost 68% from 33 cents CER reported in the year-ago period and the outlook issued on May 5, 2020, of at least 40 cents CER for the second quarter 2020.The Zacks Consensus Estimate is pegged at 41 cents.
For the to-be-reported quarter, net sales improved around 18-19% at CER from $381.6 million in the year-ago period, and faster than the projected guidance of at least 12% CER growth, issued on May 5, 2020.The Zacks Consensus Estimate is pegged at $419.8 million.The better-than-expected net revenue growth is attributable to substantial demand for solutions used in COVID-19 pandemic testing as opposed to weaker customer demand trends in other product segments.
Notably, QIAGEN continues to witness solid demand for products used in coronavirus testing – in particular Ribonucleic acid (RNA) sample technology kits, reagents sold to third parties for use in their own kits and cartridges for the QIAstat-Dx syndromic platform. Given the unmet demand from customers globally, QIAGEN is committed toward significantly and consistently expanding production capacity for these products as well as for products set to be launched.
Further information will be provided in the first half of July 2020 when QIAGEN plans to release a more comprehensive overview of preliminary results for the second quarter as well as first half of 2020, including perspectives on anticipated business trends for the third quarter of 2020. Moreover, QIAGEN plans to update the previously-communicated expectations for growth trends for the full year and share additional perspectives on the possible impact of the pandemic on QIAGEN’s business.
In the past three months, the stock has gained 12.7% compared with the 11.7% growth of its industry. It has also outperformed the S&P 500’s 12.4% growth.
Zacks Rank and Other Key Picks
QIAGEN currently has a Zacks Rank#1 (Strong Buy).
A few other top-ranked stocks from the broader medical space include Laboratory Corporation of America Holdings LH, Surmodics SRDX and Quest Diagnostics DGX.
LabCorp’s long-term earnings growth rate is estimated at 6.1%. The company presently carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently carries a Zacks Rank #2 (Buy).
Quest Diagnostics’ long-term earnings growth rate is estimated at 7.6%. It currently carries a Zacks Rank #1.
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