Analyst Note| Julie Utterback, CFA |
No-moat Qiagen turned in preliminary second-quarter results that significantly beat FactSet consensus and management's outlook. However, the shares were down around 7% in the two trading sessions since Qiagen announced a weaker-than-expected 2021 outlook mid-Monday. As we suspected, COVID-19 tailwinds appear to be turning into headwinds for Qiagen, especially in its COVID testing-related franchises. As a result, management reduced its top-line expectations for the year and pushed down its adjusted EPS outlook to the low end of its previously expected range. Our EPS forecast was mildly above that range, but we are maintaining our fair value estimate even after tweaking our expectations for 2021.