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Qiagen shares tumble on lowered guidance despite Q1 beat

EditorRachael Rajan
Published 04/30/2024, 04:54 AM
© Reuters.
QGEN
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VENLO, the Netherlands - Qiagen N.V. (NYSE: NYSE:QGEN) reported first-quarter earnings that edged past analysts' expectations but provided a full-year outlook that fell short of consensus estimates, prompting a 7.84% slide in its shares.

The provider of sample and assay technologies for molecular diagnostics, applied testing, academic and pharmaceutical research posted first-quarter net sales of $459 million, a decline of 5% compared to the same period last year. This figure, however, surpassed the analyst consensus of $453.91 million. Adjusted earnings per share (EPS) for the quarter were $0.46, slightly ahead of the $0.44 estimate.

Despite the better-than-expected performance in the first quarter, the company's stock took a hit as the full-year guidance disappointed investors. Qiagen expects full-year 2024 adjusted EPS of at least $2.10, which is below the analyst consensus of $2.11. The revenue outlook for the year is also projected to be $2 billion, trailing the consensus of $2.01 billion. For the second quarter of 2024, the company forecasts net sales of at least $495 million CER, lower than the expected $501.1 million CER, while the adjusted diluted EPS guidance of at least $0.52 CER aligns with consensus estimates.

"Our first-quarter results demonstrate that Qiagen is on track to meet our annual objectives, despite a challenging macro environment," said Thierry Bernard, CEO of Qiagen. He highlighted the company's strategic investments, such as the double-digit sales growth in QuantiFERON and QIAstat-Dx, as well as efficiency improvements.

The company's strong operating cash flow, which rose 85% to $133 million compared to the first quarter of the previous year, reflects Qiagen's financial discipline and efficiency gains.

Qiagen's reaffirmed outlook for 2024 includes net sales of at least $2.0 billion CER and an adjusted diluted EPS of at least $2.10 CER, with an adjusted operating income margin expected to rise above 28% of sales for the full year compared to 26.9% in 2023.

Chief Financial Officer Roland Sackers emphasized the company's commitment to shareholder value, citing the completion of a $300 million synthetic share repurchase in January and ongoing efforts to maximize business opportunities through disciplined capital allocation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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