A month has gone by since the last earnings report for Qiagen (QGEN). Shares have lost about 6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Qiagen due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

QIAGEN Misses Q4 Earnings, Margins Expand

QIAGEN N.V.’s fourth-quarter 2024 adjusted earnings per share were 61 cents, the same at the constant exchange rate (CER). The reported figure increased 11% from the 2023 comparable figure. However, it fell short of the Zacks Consensus Estimate by 1.6%.

The adjustment excludes the impact of certain non-recurring items, such as business integration, acquisition and restructuring-related expenses, purchased intangible amortization expenses and non-cash interest expense charges, among others.

On a GAAP basis, earnings per share in the fourth quarter was 39 cents compared with 42 cents in the year-ago period.

For the full year, adjusted earnings were $2.18 per share, up 5% from the year-ago period’s levels.

Net sales in the fourth quarter were $521.2 million (up 4% at CER). The top line marginally beat the Zacks Consensus Estimate by 0.1%. Sales at CER were $525 million, ahead of the outlook of at least $520 million.

Total revenues for 2024 were $1.98 billion, up 1% from the year-ago period’s levels.

Following the announcement, QGEN stock price dipped 1% in after-hours trading yesterday.

QGEN’s Q4 Revenue Breakdown

QIAGEN reports through four product groups — Sample technologies, Diagnostic solutions, PCR / Nucleic acid amplification, Genomics / NGS and Other.

Sample technologies revenues were down 2% on a reported basis (down 1% at CER) to $162 million. Our model projected $170.6 million for this segment.

Diagnostic solutions revenues were up 9% on a reported basis (10% at CER) to $196 million. Our model projected $194.3 million for this segment.

Within this, QuantiFERON revenues were up 14% at CER, while QIAstat-Dx revenues surged 25% at CER. Sales from NeuMoDx fell 19% at CER, while Other sales dropped 2% in the prior-year quarter.

PCR / Nucleic acid amplificationrevenues increased 2% on a reported basis (up 3% at CER) to $82 million. Our model projected $75 million for this segment.

Genomics / NGS revenues were $66 million, up 1% year over year on a reported basis and 2% at CER. Our model projected $55.1 million for this segment.

Other revenues were $15 million, down 24% year over year on a reported basis (down 21% at CER). Our model projected $16.8 million for this segment.

QIAGEN’s Operational Update

In the fourth quarter, the company’s cost of sales (excluding the amortization of acquisition-related intangibles) fell 1.5%. The adjusted gross profit rose 4.4% year over year to $346.8 million. Meanwhile, the adjusted gross margin expanded 131 basis points (bps) to 66.5%.

Sales and marketing expenses fell 3.1% year over year to $113.9 million. R&D expenses of $48.6 million were up 5.7% year over year. G&A expenses declined 2.2% year over year to $28 million.

Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring, integration and others) increased 11.6% year over year to $156.5 million. The adjusted operating margin expanded 248 bps to 30%.

QGEN’s Financial Update

QIAGEN exited the fourth quarter of 2024 with cash, cash equivalents and short-term investments of $1.2 billion compared with $1.1 billion at the end of 2023.

The long-term debt (net of the current portion) was $1.34 billion at the end of the fourth quarter of 2024 compared with $921.8 million at the end of 2023.

The cumulative net cash provided by operating activities at the end of the fourth quarter of 2024 was $676.6 million compared with $459.5 million in the year-ago period.

QIAGEN Initiates Outlook for 2025, Sets Q1 View

For 2025, net sales are expected to increase about 4% CER (about +5% CER core sales growth). The Zacks Consensus Estimate for revenues is pegged at $1.97 billion.

The adjusted earnings per share is expected to be at least $2.28 at CER. The Zacks Consensus Estimate is pegged at $2.34.

For the first quarter, the company estimates that net sales will rise about 3% CER (about 4% CER in the core business) from $459 million in the prior-year period. The Zacks Consensus Estimate currently stands at $479.38 million.

The adjusted earnings per share is expected to be at least 50 cents at CER compared with 46 cents in the first quarter of 2024. The Zacks Consensus Estimate is pegged at 52 cents.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -5.28% due to these changes.

VGM Scores

Currently, Qiagen has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Qiagen has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Qiagen belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Amgen (AMGN), has gained 6.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.

Amgen reported revenues of $9.09 billion in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $5.31 for the same period compares with $4.71 a year ago.

For the current quarter, Amgen is expected to post earnings of $4.18 per share, indicating a change of +5.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.8% over the last 30 days.

Amgen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

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This article originally published on Zacks Investment Research (zacks.com).

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