On Dec 30, we issued an updated research report on Qiagen N.V. (QGEN), a leading provider of technologies and products for the separation, purification, and handling of nucleic acids DNA/RNA. Qiagen has once again posted in-line third-quarter 2014 results. However, the company showed healthy revenue across all its product categories and customer classes.
The company posted third-quarter 2014 adjusted earnings per share of 27 cents, up 3.85% year over year but in line with the Zacks Consensus Estimate. Adjusted net sales were up 4% at CER to $336.8 million, almost on par with the Zacks Consensus Estimate.
After a sluggish performance in the second quarter of 2014, an improvement was observed in Qiagen's Asia/Pacific segment which delivered faster growth in the reported quarter with solid double-digit growth in China, mainly driven by a healthy performance in Molecular Diagnostics. According to the company, it is still a small part of the global in vitro diagnostics market, and is currently the fastest growing segment at a projected compound annual growth rate of 10% or more.
Outside the U.S., barring the top seven emerging markets’ performance, the company demonstrated growth in all the regions with the Europe / Middle East / Africa region stealing the show on the back of solid performance in the Nordic region, Turkey and Southern Europe. China, Japan, Korea and India also contributed to the growth. However, the emerging market performance was negatively affected by Russia as well as the timing impact of national orders in Mexico and Brazil.
Meanwhile, Qiagen is progressing well with the testing menu expansion strategy. Strategic collaboration is another upside likely to drive growth over time.
On the downside, however, Qiagen is facing increasing competition from companies that provide pre-analytical solutions as well as other products used by its customers. Further, strong reliance on relationships with collaborative partners and foreign exchange headwinds are other deterrents.
Other Stocks to Consider
Qiagen currently carries a Zacks Rank #3 (Hold). However, stocks worth considering in the same sector are Affymetrix Inc. (AFFX), Acorda Therapeutics, Inc. (ACOR) and GTX Inc. (GTXI). All the three stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment