Qiagen Cuts Q4, FY15 Outlook; Provides 2016 Outlook

(RTTNews) - Qiagen N.V. (QGEN) said that it cuts its outlook for the fourth quarter and full-year 2015. Its current expectations for 2016 are for approximately 6% adjusted net sales growth at constant exchange rates or CER, and for adjusted earnings per share at CER to grow approximately in line with sales.

"Our anticipated results for the fourth quarter of 2015 are disappointing given the shortfall against our expectations for more improvements in adjusted net sales and adjusted earnings per share compared to the same period in 2014. This performance was hampered by factors that included volatility in the timing of revenues from the growing portfolio of companion diagnostic partnerships as well as lower revenues from instruments, even though we exceeded our target for new placements of QIAsymphony automation systems," said Peer M. Schatz, Chief Executive Officer of QIAGEN N.V.

"Despite this setback, and due to the nature of these factors, QIAGEN continues to have a solid outlook for accelerating growth in 2016 based on the progress made on key initiatives during 2015. These included higher sales to Life Science customers, ongoing double-digit sales growth for the QuantiFERON-TB and bioinformatics franchises as well as the launch of the GeneReader NGS System in late 2015," said Peer Schatz.

For the fourth quarter of 2015, adjusted net sales are estimated to have risen approximately 3% at constant exchange rates compared to the fourth quarter of 2014 (QIAGEN had previously communicated an outlook for approximately 5% CER growth), but to have declined approximately 3% at actual rates to approximately $348 million due to about six percentage points of adverse currency movements.

About two percentage points of total CER growth are estimated to have come from the acquisitions of the Enzymatics NGS portfolio (acquired in December 2014), while sales from the rest of the business are expected to have provided about one percentage point compared to the fourth quarter of 2014.

Late in the fourth quarter of 2015, QIAGEN completed the acquisition of MO BIO Laboratories Inc., a leader in sample technologies for microbiomes, but this had a negligible contribution to results.

Excluding the impact of lower U.S. sales of HPV tests, which created approximately one percentage point of headwind, quarterly adjusted net sales are estimated to have risen approximately 4% CER compared to the year-ago period. Adjusted earnings per share are expected to have been approximately $0.33-$0.34 CER compared to $0.25 in the fourth quarter of 2014. QIAGEN had previously communicated an outlook for adjusted EPS of $0.35 CER.

Quarterly adjusted earnings per share results at actual rates are expected to have been approximately $0.31-$0.32 and reflect the impact of adverse currency movements.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.33 per share and revenues of $357.66 million for the fourth-quarter. Analysts' estimates typically exclude special items.

For the full-year 2015, adjusted net sales are estimated to have risen approximately 3% at constant exchange rates compared to 2014 (QIAGEN had previously communicated an outlook for approximately 4% CER growth), but to have declined about 5% at actual rates to approximately $1.280 billion due to about eight percentage points of adverse currency movements of the U.S. dollar, QIAGEN's reporting currency, against various other currencies.

Excluding the impact of lower U.S. sales of Human Papilloma Virus test products (cervical cancer screening), which created approximately three percentage points of headwind, annual adjusted net sales are estimated to have risen about 6% CER compared to 2014. Adjusted earnings per share are expected to have been approximately $1.13-$1.14 CER for the full year compared to $1.00 in 2014 (QIAGEN had previously communicated an outlook for adjusted diluted EPS of $1.16 CER). Adjusted EPS results at actual rates are expected to have been approximately $1.05-$1.06 and reflecting the impact of adverse currency movements.

Wall Street currently is looking for fiscal year 2015 earnings of $1.07 per share on annual revenues of $1.29 billion.

QIAGEN announced its outlook for the full-year 2016, with expectations for adjusted net sales to rise approximately 6% CER from the current portfolio (including anticipated incremental contributions of less than one percentage point from 2015 acquisitions). These expectations do not take into account any further acquisitions that could be completed in 2016. Adjusted earnings per share for the full-year 2016 at CER are expected to rise approximately in line with sales.

Based on exchange rates as of January 8, 2016, QIAGEN currently expects currency movements against the U.S. dollar to have an adverse impact of approximately two percentage points for the full-year 2016 on results for adjusted net sales and adjusted diluted EPS at actual rates.

Analysts expect the company to report earnings of $1.17 per share and revenues of $1.37 billion for fiscal year 2016.

QIAGEN confirms its previously announced plans to report full financial results for the fourth quarter and full-year 2015 on Tuesday, February 2.