QIAGEN Weathers Macro Storm Better Than Most; QuantiFERON TB Driving Strong Diagnostic Growth
10-31-23 (by: Scott Gleason) QIAGEN reported total revenue in the 3Q23 of $476 million, declined 5% year-over-year, predominantly due to COVID-19 headwinds relative to the 3Q22. The street was looking for total revenue of $469.8 million in the quarter. The company saw 6% growth in the non-COVID-19 product portfolio, which reached $442 million in the quarter. This growth was supported by increased sales from instruments, as well as recurring consumables and related revenues. Like other life science tools manufacturers, the company noted the challenging macro backdrop. The company noted non-COVID-19 product sales to China declined at a single digit rate, better than most other life science companies.
The company’s life sciences business unit was down 9% in the quarter, and diagnostics was down 1%. The company noted its QuantiFERON TB test grew 25% and had sales of over $100 million in the quarter. Also, its QIAcuity digital PCR system grew 40% in the quarter.
Adjusted operating margin was 26.6% in the quarter, despite R&D investments of 10% of revenue. Adjusted diluted earnings per share (EPS) for Q3 2023 were $0.50, exceeding consensus forecasts of $0.48.
QIAGEN has reaffirmed its full-year 2023 outlook for net sales of at least $1.97 billion despite noted capital equipment headwinds. The company is guiding to 4Q sales of at least $500 million, reflecting sequential growth from the third quarter. The company also reaffirmed its adjusted diluted EPS guidance of $2.07 for the full year 2023.
Thierry Bernard, Chief Executive Officer of QIAGEN, emphasized the significance of strategic focus and balance in serving their vast customer base. He noted the company’s ability to generate sales gains across multiple portfolio areas and key regions, positioning them for more growth and expansion in 2024 and beyond.