Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong Sell) on May 16.
Why the Downgrade?
Earnings momentum for this molecular diagnostics company has
slumped following disappointing first-quarter 2013 results.
Shares of QIAGEN have been on a downtrend since April 29, when it
reported a weak quarter. Also, the company's negative earnings
growth rate for the ongoing quarter reflects that the stock has
more downside left.
QIAGEN reported first-quarter adjusted earnings per share of 20
cents, missing the Zacks Consensus Estimate as well as the
year-ago mark of 22 cents each. Despite sales growth of 2% (up 3%
at constant exchange rate or CER), net sales of $303.6 million in
the last quarter failed to meet the Zacks Consensus Estimate of
Based on the dismal performance, QIAGEN revised its 2013 revenues
outlook. The company expects net sales to rise by 5% at CER
compared with earlier guidance of 5%-6%. QIAGEN also reduced its
2013 EPS guidance to $1.13 from earlier provided range of
$1.16−$1.18. The current Zacks Consensus Estimate of $1.04
remains outside the guided range reflecting a negative bias for
the ongoing year.
Estimate revision trend reflects overly bearish sentiments
towards QIAGEN's earnings for the ongoing and next year. Over the
last 60 days, most of the estimates were revised downward with no
upward revision for 2013 and 2014. The Zacks Consensus Estimate
for 2013 decreased 6.3% to $1.04 per share. For 2014, the Zacks
Consensus Estimate declined 4.1% to $1.18 per share over the last
Other Stocks to Consider
While QIAGEN is currently out of favor, peer
Myriad Genetics Inc.
) carries a favorable Zacks Rank #2 (Buy). Other players such as
), holding a Zacks Rank #2, are also worth considering.
ALKERMES INC (ALKS): Free Stock Analysis
ILLUMINA INC (ILMN): Free Stock Analysis
MYRIAD GENETICS (MYGN): Free Stock Analysis
QIAGEN NV (QGEN): Free Stock Analysis Report
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