QIAGEN, Tecan and Thermo Fisher Raise Sales Forecasts
Washington, DC 12/1/20; Männedorf, Switzerland 12/1/20; Venlo, the Netherlands 12/8/20—Three lab instrument tool firms have raised their 2020 revenue forecasts. Thermo Fisher Scientific now expects organic sales to grow 40% in the fourth quarter, up from an initial estimate of 29% (see IBO 11/16/20), according to an SEC filing. This would result in 22% organic growth for the year. The company also expects 2020 adjusted EPS to grow 55% to $19.17, versus an earlier estimate of 48% growth.
Swiss firm Tecan has also raised its full-year sales forecast from growth in the high single digits in local currency (see IBO 9/15/20) to growth in the low to mid-teens. The increase was attributed to strong revenues and COVID-19-related demand. The company also updated its EBITDA margin expectation to 20.5% of sales from the “closer to 20% of sales” estimate made in August. The revisions are also based on currency changes and benefits of scale tied to higher volumes.
QIAGEN also updated its expectations for fourth quarter and provided full-year sales guidance for 2020 and 2021. Fourth quarter sales are estimated to rise a minimum of 32% at constant exchange rates (CER), versus a previous forecast of 24%–27%. Quarterly adjusted EPS is expected to increase to $0.64–$0.65, up from the previous forecast of $0.58–$0.60 and up from $0.48 a year ago.
QIAGEN 2020 revenues are forecast to increase approximately 22%, whereas the previous estimate was around 20%. Adjusted EPS is estimated to hit $2.13–$2.14 compared to $1.43 in 2019 and the previous 2020 forecast of $2.07–$2.09.
QIAGEN also gave guidance for 2021, estimating a 18%–20% increase in revenues from the 2020 mid-point. Full-year adjusted EPS is expected to be $2.42–$2.46. The company attributed financial prospects to its five pillars of growth: sample technologies, QuantFERON for immune response testing, the NeuMoDx PCR system, the QIAstat-Dx syndromic testing solution and the QIAcuity digital PCR solution (see Agilent, PerkinElmer and QIAGEN Provide a New Look at Their Scientific Tool Businesses).
In October, Thermo Fisher had an estimated $1.8 billion in COVID-19-associated sales for the fourth quarter, a number that is likely higher now based on this latest news. The company’s third quarter sales grew 36%.
Indicative of the COVID-19 testing boost for QIAGEN, the company’s nine-month revenues for products used in COVID-19 testing totaled $418 million to make up 32% of company sales.
This is the second time this year Tecan has upped its guidance. In March, it forecast sales to rise mid- to high-single digits in local currency and an EBITDA margin of around 19.6%. Tecan’s pipette tips are used for COVID-19-related lab testing.