Tuesday, February 14, 2006

Qiagen Reports

Finally, there’s a good earnings report from Qiagen (QGEN). Yesterday, Qiagen reported earnings per share of $0.13, which beat the estimates of $0.12. Revenues came in at $104.3 million, which came in just under expectations of $105.2 million. The market reacted very favorably to the earnings report and the stock increased 5.4% on very heavy volume to close at $13.18. The company has really transformed itself and is now the fourth largest molecular diagnostics company in the world. This company is a cash cow... just take a look at their free cash flow. They generated $77.5 million in free cash flow in 2005 compared to $41.5 million in 2004. This free cash flow number is big. Qiagen should go higher...

Oh, Genzyme (GENZ) reports tommorow morning. I'm not expecting any blowouts; just something in line.

Note: I have positions in both Qiagen and Genzyme.


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