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Qiagen to Take Charge of up to $120M Due to US Tax Legislation

NEW YORK (GenomeWeb) – Qiagen said late last week that it would take an after-tax charge to its fourth quarter net income of $110 million to $120 million, or $.47 to $.52 per share, due to the recently passed tax legislation in the US.

The firm also said that it would take an additional after-tax charge of around $7 million, or $.03 per share, in 2018. According to the company, these charges will not affect its adjusted earnings per share for Q4 2017, full-year 2017, or full-year 2018.

Qiagen said that approximately $100 million to $110 million of the write-off involves non-cash items related to deferred tax assets, revaluation of deferred tax liabilities, and other tax provisions. It further said that it has initiated additional restructuring initiatives aimed at mitigating some of the impact of the new tax law.

It also said that it expects a preliminary adjusted tax rate for full-year 2018 of approximately 20 percent to 21 percent, primarily due to the new US limitations on interest deductions. The firm had previously expected an adjusted tax rate of approximately 19 percent to 20 percent for 2018 through 2020.

Qiagen's shares on the Nasdaq dropped around 2 percent on Tuesday to close at $31.16, but have partially rebounded and were trading at $31.60 in Wednesday morning trade.