QIAGEN N.V. (NYSE: QGEN; Frankfurt Prime Standard: QIA) announced results for the third quarter of 2022 and first nine months of 2022, and increased the outlook for full-year 2022.
Net sales for Q3 2022 declined 7% (0% at constant exchange rates, CER) to $500 million from Q3 2021. Sales at CER were $533 million, ahead of the outlook for at least $510 million CER and driven by 18% CER growth in the non-COVID-19 portfolio to $417 million. COVID-19 product group sales fell 43% CER to $83 million amid reduced demand. Adjusted diluted earnings per share (EPS) were $0.53 ($0.55 CER) compared to $0.58 in Q3 2021, and ahead of the outlook for at least $0.48 CER.
QIAGEN raised its full-year 2022 outlook based on the strong results in the first nine months of the year and also to reflect the strong outlook for the fourth quarter. Net sales are now expected to be about $2.25 billion CER (prior outlook for at least $2.2 billion CER) and adjusted diluted EPS are expected to be about $2.40 CER (prior outlook for at least $2.30 CER). This update includes a reaffirmation for double-digit CER sales growth from the non-COVID product groups, which grew 14% CER in the first nine months of 2022, but for a decline in COVID-19 sales amid volatile pandemic trends. It also reflects an updated assessment of current macro-economic trends.
“QIAGEN delivered another solid performance in the third quarter of 2022, led by ongoing double-digit sales growth in our non-COVID product portfolio, a high level of profitability and strong cash flow,” said Thierry Bernard, Chief Executive Officer of QIAGEN N.V. “We continue to see broad-based demand for QIAGEN’s solutions in both molecular research and clinical testing markets around the world. Our results demonstrate our focus on delivering against the targets we have set, in particular achieving another quarter of double-digit sales growth in our non-COVID portfolio. As we proactively address various macro trends, we are executing on our strategy focused on advancing our Five Pillars of Growth. QIAGEN is clearly set to finish the year with strong results in 2022, and anchored by our commitment to create value for our shareholders and other stakeholders.”
Roland Sackers, Chief Financial Officer of QIAGEN N.V., said: “Our results for the third quarter exceeded the outlook for sales and adjusted EPS, and enabled QIAGEN to again raise the full-year 2022 outlook. We have been proactively addressing macro trends, such as energy sourcing and supply chain constraints to ensure QIAGEN can continue to serve the needs of customers worldwide. With our strong cash flow and healthy balance sheet, we continue to make targeted investments into key areas and review opportunities to strengthen our business portfolio while also increasing returns through our disciplined capital deployment strategy that has proven its value.”
Please find a PDF of the full press release incl. tables here.
Investor presentation and conference call
A conference call is planned for Tuesday, November 8 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 replay will also be made available after the event. A presentation is planned to 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 September 30, 2022, QIAGEN employed more than 6,200 people in over 35 locations worldwide. Further information can be found at http://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, including those products used in the response to the COVID-19 pandemic, 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, including the breadth and duration of the COVID-19 pandemic 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
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