QIAGEN N.V.’s QGEN growth is 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.
Meanwhile, QIAGEN’s operations are vulnerable to macroeconomic volatilities and currency fluctuations, which can adversely affect its financial results.
Year to date, this Zacks Rank #3 (Buy) stock has risen 0.9% compared with 10.5% growth of the industry. The S&P 500 composite has witnessed an 18.1% rise in the said time frame.
The renowned global provider of sample and assay technologies has a market capitalization of $10.05 billion. QGEN’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, delivering an average surprise of 2.64%.
Let’s delve deeper.
Key QIAGEN Upsides
Huge Potential in Molecular Diagnostics: QIAGEN offers one of the broadest portfolios of molecular technologies for healthcare. In the second quarter of 2024, the 8% 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 QIAstat-Dx testing system’s growth was driven by significant gains in consumables and an ongoing good level of instrument 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.
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 second quarter of 2024 marked a series of numerous developments, such as the launch of Investigator Quantiplex Pro FLX kit, which offers forensic laboratories a high level of sensitivity when processing forensics samples.
Within the digital PCR platform QIAcuity, the company launched 35 new wet-lab tested digital PCR Microbial DNA Detection Assays and a new digital PCR (dPCR) Custom Assay Design Tool for copy number variation analysis.
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Key QIAGEN 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 second quarter, the company’s sales in the Asia-Pacific Japan region declined at a low-single-digit CER rate. Sales in China declined at a single-digit CER rate, reflecting the macro challenges in this market that are likely to stay for a while.
Foreign Exchange Uncertainties: Recording more than 50% of its revenues from the international market, QIAGEN is highly exposed to the risk of foreign currency movement. The situation may worsen with the strengthening of the domestic currency against high-focus nations.
Any unanticipated currency headwinds in high-focus markets may drag the top and the bottom lines further. Sales in the Asia Pacific, Japan and the Rest of the World region were adversely impacted by 7% points from unfavorable currency movements against the U.S. dollar during the second quarter of 2024.
Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for QIAGEN’s 2024 earnings per share has increased 1.4% to $2.15.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.97 billion, which suggests an increase of 0.2% from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are TransMedix Group TMDX, Intuitive Surgical ISRG and Boston Scientific BSX.
TransMedix Group’s earnings are expected to surge 255.8% in 2024. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 287.5%. Its shares have risen 178.7% compared with the industry’s 10.5% growth in the past year.
TMDX sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical, sporting a Zacks Rank of 1 at present, has an estimated long-term earnings growth rate of 17.4% compared with the industry’s 13.7%. Shares of the company have risen 58.9% compared with the industry’s 12.5% growth over the past year.
ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.97%.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated earnings growth rate of 17.1% for 2024 compared with the industry’s 15.7%. Shares of the company have risen 47.8% compared with the industry’s 10.4% growth over the past year.
BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 7.2%.
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