QIAGEN N.V.’s (QGEN – Free Report) first-quarter 2025 adjusted earnings per share (EPS) were 55 cents, and 56 cents at constant exchange rate (CER). The bottom line increased 17% from the year-ago level. Additionally, it surpassed the Zacks Consensus Estimate by 10%.
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 first quarter was 41 cents compared with 36 cents in the year-ago period.
Following the announcement, QGEN stock rose 1.1% yesterday.
QGEN’s Q1 revenues
Net sales in the quarter were $483.5 million, up 5.4% from the year-ago figure (up 7% at CER). The top line beat the Zacks Consensus Estimate by 4.8%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
QGEN’s Q1 revenue breakdown
QIAGEN reports through product groups, namely Sample technologies, Diagnostic solutions, PCR / Nucleic acid amplification, Genomics / NGS and Other.
Sample technologies revenues plunged 3% on a reported basis (down 1% at CER) to $150 million. Our model projected $148 million for this segment.
Diagnostic solutions revenues rose 9% on a reported basis (11% at CER) to $187 million. Our model projected $183.7 million for this segment.
Within this, on a CER basis, QuantiFERON revenues were up 16% and QIAstat-Dx revenues surged 37%. Sales from NeuMoDx fell 36% at CER, while Other sales dropped 9% from the year-earlier level.
PCR/Nucleic acid amplification revenues increased 13% on a reported basis (up 14% at CER) to $76 million. Our model projected $66.6 million for this segment.
Genomics/NGS revenues totaled $53 million, down 3% year over year on a reported basis and 2% at CER. Our model projected $55 million for this segment.
Other revenues amounted to $18 million, up 57% year over year on a reported basis (up 64% at CER). Our model projected $10.7 million for this segment.
QIAGEN’s operational update
In the first quarter, the company’s cost of sales (excluding the amortization of acquisition-related intangibles) fell 6.3%. The adjusted gross profit rose 4.9% year over year to $322.2 million. Meanwhile, the adjusted gross margin contracted 29 basis points (bps) to 66.6%.
Sales and marketing expenses fell 4.3% year over year to $106.3 million. R&D expenses of $43.8 million were down 14.7% year over year. G&A expenses rose 14.6% year over year to $31.6 million.
Adjusted operating income (excluding items like acquisition-related intangible amortization, restructuring, integration and others) increased 20% year over year to $140.4 million. The adjusted operating margin expanded 354 bps to 29%.
QGEN’s financial update
QIAGEN exited the first quarter of 2025 with cash, cash equivalents and short-term investments of $963.4 million compared with $1.20 billion at the end of the fourth quarter of 2024.
QIAGEN NV price, consensus and EPS surprise
The long-term debt (net of the current portion) was $1.35 billion at the end of the first quarter of 2025 compared with $1.34 billion at the end of the fourth quarter of 2024.
The net cash provided by operating activities at the end of the first quarter of 2025 was $139.7 million compared with $133.1 million in the year-ago period.
QIAGEN reaffirms outlook for 2025, sets Q2 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 $2.02 billion.
The adjusted EPS is expected to be $2.35 at CER (up from the previous outlook of $2.28 at CER). The Zacks Consensus Estimate is pegged at $2.27.
For the second quarter, the company estimates net sales to rise about 5% at CER (about 5% at CER in the core business) from $496 million in the prior-year period. The Zacks Consensus Estimate is currently pinned at $505.9 million.
The adjusted EPS is expected to be at least 60 cents at CER compared with 55 cents in the second quarter of 2024. The Zacks Consensus Estimate is pegged at 56 cents.
Our take on QGEN
QIAGEN ended the first quarter of 2025 with better-than-expected results, wherein both earnings and revenues surpassed their respective estimates. The company’s performance reflect 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. PCR/Nucleic acid amplification technologies also posted solid growth, supported by the continued adoption of the QIAcuity digital PCR system. Consumables and related revenues grew while instrument sales were flat year over year, reflecting ongoing cautious capital spending trends among customers. Additionally, the expansion of operating margin in the quarter is encouraging.
QIAGEN remains focused on delivering on its 2025 outlook, paving the way for achieving its 2028 goal. However, rising costs and declining gross margins do not bode well.
QGEN’s Zacks rank and other key picks
QIAGEN currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks from the broader medical space are AngioDynamics (ANGO – Free Report), Integer Holdings Corporation (ITGR – Free Report) and Boston Scientific (BSX – Free Report) .
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. Revenues of $72 million beat the Zacks Consensus Estimate by 2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5% growth. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 70.9%.
Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, which outpaced the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.
ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%.
Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2025 adjusted EPS of 75 cents, which surpassed the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 2.3%.
BSX has an estimated 2025 earnings growth rate of 15.9% compared with the S&P 500 composite’s 11.9% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.8%.
Seven best stocks for the next 30 days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
Want the latest recommendations from Zacks Investment Research? Download 7 Best Stocks for the Next 30 Days. Click to get this free report