QIAGEN reports results for Q1 2024 ahead of outlook, on track to achieve full-year 2024 guidance

Rhea-AI Summary

QIAGEN reported its Q1 2024 results, showcasing net sales of $459 million with a 5% decline, but exceeded expectations with $462 million at constant exchange rates. The company's adjusted operating income margin rose to 25.7% from 25.6% in Q1 2023, with adjusted diluted EPS at $0.46, above the outlook of $0.44. Key growth drivers include double-digit CER growth in QuantiFERON and QIAstat-Dx, resulting in a positive outlook for 2024 with reaffirmed guidance of at least $2.0 billion in net sales and adjusted diluted EPS of at least $2.10 CER.

Positive

• Exceeded Q1 2024 net sales outlook at constant exchange rates with $462 million

• Adjusted operating income margin improved to 25.7% from 25.6% in Q1 2023

• Strong growth in QuantiFERON and QIAstat-Dx with double-digit CER growth

• Reaffirmed 2024 guidance for net sales of at least $2.0 billion CER and adjusted diluted EPS of at least $2.10 CER

Negative

• 5% decline in net sales to $459 million in Q1 2024

• Excluding COVID-19 product groups, net sales declined by 1% CER

Insights

Financial Analyst

With the first quarter (Q1) net sales decreasing by 5% to $459 million and a decline in sales excluding COVID-19 product groups, QIAGEN's performance indicates some contraction in the market that is broadly aligned with post-pandemic expectations. However, the company's increase in adjusted operating income margin to 25.7% from 25.6% reflects a strategic emphasis on efficiency. Investors should note the sizable 85% year-over-year increase in operating cash flow to $133 million, an indicator of strong underlying financial health and operational efficiency.

Biotech Market Analyst

From a market standpoint, the robust sales growth in QuantiFERON and QIAstat-Dx suggest that QIAGEN is carving out a valuable niche in the diagnostics space, particularly with its focus on latent TB testing and syndromic testing. The introduction of new technologies like QIAcuity into oncology applications is a strategic move that could position the company advantageously in a rapidly growing segment. It's these innovations that may help offset broader market softness.

Investment Strategist

For investors, QIAGEN's reaffirmation of its full-year 2024 guidance and the underlying strong cash flow demonstrate a company with resilient business practices, even in a challenging macro environment. The completion of a $300 million synthetic share repurchase reflects a commitment to shareholder value and a robust balance sheet. However, investors should be mindful of the macroeconomic conditions and competitive pressures that could influence QIAGEN's performance moving forward.

Q1 2024: Net sales of $459 million (-5% actual rates, -5% constant exchange rates, CER); diluted EPS of $0.36 and adjusted diluted EPS of $0.46 // Net sales at CER of $462 million ahead of outlook for at least $455 million CER and adj. diluted EPS of $0.47 CER ahead of $0.44 CER outlook // Excluding COVID-19 product groups, net sales decline 1% CER // Diagnostics sales +5% CER on double-digit CER growth in QuantiFERON and QIAstat‑Dx // 25.7% adjusted operating income margin on efficiency gains vs. 25.6% in Q1 2023 // Strong operating cash flow rises 85% to $133 million vs. Q1 2023 // 2024 outlook reaffirmed for at least $2.0 billion CER net sales and adj. diluted EPS of at least $2.10 CER

Venlo, the Netherlands, April 29, 2024 (GLOBE NEWSWIRE) -- QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) today announced results for the first quarter of 2024.

Net sales declined 5% to $459 million, while results at constant exchanges rates (CER) of $462 million were above the outlook for at least $455 million CER. The adjusted operating income margin rose to 25.7% from 25.6% in the year-ago period on realized efficiency gains while supporting investments into the portfolio. Adjusted diluted earnings per share (EPS) were $0.46, and results at CER were $0.47 and above the outlook for at least $0.44 CER.

For 2024, QIAGEN has reaffirmed its outlook for net sales of at least $2.0 billion CER. Adjusted diluted EPS are expected to be at least $2.10 CER, led by the adjusted operating income margin rising to above 28% of sales for FY 2024 compared to 26.9% in 2023 while supporting investments.

“Our results for the first quarter of 2024 show QIAGEN is on track to achieve the goals that we have set for the year. They also showcase the areas of resilient growth from our strategic investments – particularly with the double-digit sales growth in QuantiFERON, QIAstat-Dx and QIAcuity – as well as our commitment to improving efficiency,“ said Thierry Bernard, Chief Executive Officer of QIAGEN.

“As we move on from the pandemic, we are steadfast in our commitment to driving innovation given our ongoing high level of R&D investments that help strengthen our portfolio. QuantiFERON sales continued to grow as we drive conversion of latent TB testing to the modern blood-based test. QIAstat‑Dx sales were also robust, with growth in both respiratory and non-respiratory panels for syndromic testing. Building on the tremendous acceptance of QIAcuity among our customers, we are democratizing access to this powerful digital PCR technology and expanding into new oncology applications that can improve healthcare. As we navigate a challenging macro environment, we are well-positioned in 2024 and determined to deliver on our full-year outlook.“

Roland Sackers, Chief Financial Officer of QIAGEN, said: “Our strong operating income margin in Q1 2024 reflects our dedication to efficiency and growth-focused investments despite cautious instrument purchases. As we introduce new products and elevate customer engagement, our commitment to enhancing value for our shareholders remains strong. Having completed the $300 million synthetic share repurchase in January, we continue to explore opportunities to maximize our business thanks to our healthy balance sheet and strong cash flow through disciplined capital allocation.“

Please find the full press release incl. tables here.

Investor presentation and conference call

A conference call is planned for Tuesday, April 30, 2024 at 15:00 Frankfurt Time / 14:00 London Time / 9:00 New York Time. A live audio webcast will be made available in the investor relations section of the QIAGEN website, and a recording will also be made available after the event. A presentation will be available before the conference call at https://corporate.qiagen.com/investor-relations/events-and-presentations/default.aspx.

Use of adjusted results

QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) basis, and other non-U.S. GAAP figures (generally accepted accounting principles), to provide additional insight into its performance. These results include adjusted net sales, adjusted gross income, adjusted gross profit, adjusted operating income, adjusted operating expenses, adjusted operating income margin, adjusted net income, adjusted net income before taxes, adjusted diluted EPS, adjusted EBITDA, adjusted EPS, adjusted income taxes, adjusted tax rate, and free cash flow. Free cash flow is calculated by deducting capital expenditures for Property, Plant & Equipment from cash flow from operating activities. Adjusted results are non-GAAP financial measures that QIAGEN believes should be considered in addition to reported results prepared in accordance with GAAP but should not be considered as a substitute. QIAGEN believes certain items should be excluded from adjusted results when they are outside of ongoing core operations, vary significantly from period to period, or affect the comparability of results with competitors and its own prior periods. Furthermore, QIAGEN uses non-GAAP and constant currency financial measures internally in planning, forecasting and reporting, as well as to measure and compensate employees. QIAGEN also uses adjusted results when comparing current performance to historical operating results, which have consistently been presented on an adjusted basis.

About QIAGEN

QIAGEN N.V., a Netherlands-based holding company, is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life. Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows. QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human healthcare) and Life Sciences (academia, pharma R&D and industrial applications, primarily forensics). As of March 31, 2024, QIAGEN employed more than 5,900 people in over 35 locations worldwide. Further information can be found at https://www.qiagen.com.

Forward-Looking Statement

Certain statements contained in this press release may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products, timing for launch and development, marketing and/or regulatory approvals, financial and operational outlook, growth and expansion, collaborations, markets, strategy or operating results, including without limitation its expected adjusted net sales and adjusted diluted earnings results, are forward-looking, such statements are based on current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and the integration of acquired technologies and businesses; actions of governments, global or regional economic developments, weather or transportation delays, natural disasters, political or public health crises, and its impact on the demand for our products and other aspects of our business, or other force majeure events; as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected; and the other factors discussed under the heading „Risk Factors” contained in Item 3 of our most recent Annual Report on Form 20-F. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission.

Source: QIAGEN N.V.
Category: Financial

FAQ

What were QIAGEN's net sales in Q1 2024?

QIAGEN reported net sales of $459 million in Q1 2024.

How much did the adjusted operating income margin improve in Q1 2024?

The adjusted operating income margin rose to 25.7% from 25.6% in Q1 2023.

What is the outlook for QIAGEN's 2024 guidance?

QIAGEN reaffirmed its 2024 guidance for net sales of at least $2.0 billion CER and adjusted diluted EPS of at least $2.10 CER.