QIAGEN N.V.’s QGEN fourth-quarter 2024 adjusted earnings per share (EPS) 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%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

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, EPS 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 technologiesrevenues 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.

QIAGEN N.V. Price, Consensus and EPS Surprise

QIAGEN N.V. price-consensus-eps-surprise-chart | QIAGEN N.V. Quote

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 EPS 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 EPS 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.

Our Take on QGEN

QIAGEN ended the fourth quarter of 2024 on a mixed note, with earnings missing and revenues beating estimates. However, the bottom line increased on a year-over-year basis. The company’s performance reflected a resilient portfolio, with a substantial portion of sales coming from highly recurring revenues and a continued emphasis on delivering solid profitable growth in a challenging environment. Diagnostic solutions registered the highest growth, driven by strong demand for QuantiFERON and QIAstat-Dx. The QIAcuity digital PCR system reached more than 2,700 cumulative placements since the launch despite ongoing challenging instrument purchasing trends.

Additionally, the expansion of both margins in the quarter is encouraging. QIAGEN remains focused on delivering on its 2025 outlook, paving the way for achieving its 2028 goal.

QGEN’s Zacks Rank and Key Picks

QIAGEN currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are ResMed RMD, Cardinal Health CAH and Bio-Rad Laboratories BIO.

ResMed reported second-quarter fiscal 2025 adjusted EPS of $2.43, which topped the Zacks Consensus Estimate by 5.6%. Revenues of $1.28 billion exceeded the Zacks Consensus Estimate by 1.6%. RMD carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

RMD has an estimated fiscal 2025 earnings growth rate of 21.9% compared with the industry’s 13.2%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.9%.

Cardinal Health, carrying a Zacks Rank #2, posted second-quarter fiscal 2025 adjusted EPS of $1.93, topping the Zacks Consensus Estimate by 10.3%. Revenues of $55.26 billion exceeded the Zacks Consensus Estimate by 0.7%.

CAH has an estimated five-year earnings growth rate of 10.7% compared with the industry’s 9.3%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%.

Bio-Rad Laboratories, carrying a Zacks Rank #2, posted third-quarter 2024 adjusted EPS of $2.01, topping the Zacks Consensus Estimate by 57%. Revenues of $649.7 million exceeded the Zacks Consensus Estimate by 2%.

BIO has an earnings yield of 3.3% compared with the industry’s 0.6% yield. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.5%.

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