😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Qiagen's Q1 Results Hit By Currency, Competition Rife

Published 06/20/2016, 09:32 PM
Updated 07/09/2023, 06:31 AM

On Jun 21, we issued an updated research report on Venlo, Netherlands-based Qiagen N.V. (NASDAQ:QGEN) – a global provider of innovative technologies and products for pre-analytical sample preparation and molecular diagnostics solutions. The company currently carries a Zacks Rank #4 (Sell).

Qiagen started 2016 on mixed note with first-quarter revenues surpassing the Zacks Consensus Estimate and earnings meeting the same. Moreover, the company’s weak free cash flow reserve raises concern.

Currently, Qiagen records more than 50% of its revenues from international markets which makes the company highly vulnerable to unfavorable foreign exchangetranslation. Evidently, currency headwinds have hurt Qiagen’s first-quarter net sales by 2%. Based on the current exchange rates, management expects an impact of 2% on sales and $0.02 on adjusted EPS in 2016.

The company is also facing increasing competition from firms that provide pre-analytical solutions and other products. Moreover, Qiagen’s personalized healthcare business largely depends on its collaborative relation with pharmaceutical and biotechnology companies. Thus, if the company fails to maintain these ties or if its collaborative partners join hands with the companion diagnostic competitors of Qiagen, it will hurt sales to a large extent.

On a brighter note, Qiagen has been making considerable progress with its QuantiFERON latent TB test, especially with the rollout of the fourth-generation QuantiFERON TB Goal Plus in select markets.Further, the company has expanded its universal NGS portfolio with the launch of over 170 QIAseq Targeted RNA Panels for NGS-based Gene expression and profiling.

Further, to capture a larger share of the billion-dollar molecular diagnostics market, Qiagen has been making considerable progress in its test menu. Last week, the company initiated the simultaneous launch of its QIAsure Methylation test in Europe, Middle East and Africa; which will determine individual patient’s risk of developing cervical cancer.

Key Picks in the Sector

Better-ranked medical stocks are Baxter International Inc. (NYSE:BAX) , Boston Scientific Corporation (NYSE:BSX) and LeMaitre Vascular, Inc. (NASDAQ:LMAT) . While Baxter sports a Zacks Rank #1 (Strong Buy), Boston Scientific and LeMaitre Vascular carry a Zacks Rank #2 (Buy).

BOSTON SCIENTIF (BSX): Free Stock Analysis Report

BAXTER INTL (BAX): Free Stock Analysis Report

LEMAITRE VASCLR (LMAT): Free Stock Analysis Report

QIAGEN NV (QGEN): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.