Qiagen on Tuesday reported net sales of $498 million for the fourth quarter, a decline of 14% from $582 million in Q4 2021.
For the quarter ended December 31, consumables and related revenues were $433 million, down 16% year-over-year; instrument revenues were $65 million, the same as for Q4 2021; molecular diagnostics revenues were $258 million, a decline of 18% year-over-year; and life sciences revenues were $240 million, down 11% year-over-year.
Q4 year-over-year growth was impacted by declining COVID-19 testing demand, but Qiagen expected such a decline.
“We exceeded our outlook for net sales growth and adjusted [earnings per share (EPS)] both for the fourth quarter and for the full year 2022,” Thierry Bernard, CEO of Qiagen, said on a conference call to discuss the financial results. “75% of the outlook beat for both the fourth quarter and full-year 2022 came from sales in the non-COVID product group.”
The company booked $66 million for COVID-19 products in Q4, a year-over-year decrease of 64%.
While sales of products for COVID-19 testing declined significantly as expected, “our teams executed on key goals in 2022 to advance our sample-to-insights portfolio,” Bernard said. “We also saw solid demand trends for consumable and instruments in our sample technology portfolio.”
In Q4, the firm booked revenues of $432 million for non-COVID-19 products, a year-over-year increase of 15%. The growth was due to a year-over-year double-digit increase at constant exchange rates (CER) for consumables and related products, as well as solid growth from instrument sales, Qiagen said.
Excluding COVID-19 product sales for the recently completed and prior-year quarters, both the molecular diagnostics and life science customer classes delivered double-digit year-over-year sales growth at CER.
For Q4, the company reported net income of $89 million, or $.39 per share, compared to $129 million, or $.56 per share, in the prior-year quarter. Qiagen’s adjusted EPS was $.55 at constant exchange rates (CER), beating its estimate of $.50 at CER.
For full-year 2022, the company booked net sales of $2.14 billion, down 5% from $2.25 billion in 2021.
For the year, Qiagen booked $1.67 billion in non-COVID product sales, up 8% year-over-year, and $470 million for COVID-19 products, a decrease of 33% year-over-year.
Its net income for 2022 was $423 million, or $1.84 per share, compared to $513 million, or $2.21 per share, in 2021. Adjusted EPS for 2022 of $2.38 exceeded the firm’s outlook.
Qiagen initiated a 2023 outlook, saying it expects at least $2.05 billion in net sales at CER, including double-digit year-over-year growth at CER in non-COVID products. It guided to an adjusted EPS of at least $2.10 at CER.
“We have taken a prudent approach to our outlook for 2023,” Bernard said. “We continue to feel confident in achieving the double-digit CER growth target for our non-COVID product groups for the new year 2023, while also planning for a significant decline in COVID-19 sales.”
For Q1 2023, net sales are expected to be at least $490 million at CER, while adjusted EPS is expected to be at least $0.47 at CER.
Qiagen announced it has appointed Dr. Rick Bright -- an American immunologist and public health official, and an expert in vaccine, drugs, and diagnostic test development -- as a new member of its scientific advisory board.
Qiagen shares were down less than 1% to $49.37 at the end of Wednesday trading on the Nasdaq.