Latest news with #BrianBlaser
Yahoo
04-08-2025
- Business
- Yahoo
QuidelOrtho Corporation (QDEL): A Bull Case Theory
We came across a bullish thesis on QuidelOrtho Corporation on by Novana. In this article, we will summarize the bulls' thesis on QDEL. QuidelOrtho Corporation's share was trading at $27.39 as of July 25th. QDEL's trailing and forward P/E were 9.16 and 11.22, respectively according to Yahoo Finance. A medical technician wearing protective gear packaging a COVID-19 antigen rapid test kit. QuidelOrtho ('Quidel') represents a structurally growing diagnostics franchise trading at a deep discount to intrinsic value, weighed down by transitory headwinds that are now receding. Pandemic-related distortions in COVID-19 revenue, the sub-optimal integration of Ortho Clinical Diagnostics, leadership shortcomings, Savanna delays, and fears of tariff escalation collectively eroded margins and investor confidence. Under new CEO Brian Blaser, formerly of Abbott, operational discipline is being restored, integration costs cut, and the Savanna program terminated, removing a material EBITDA drag. The acquisition of Ortho brought a highly recurring laboratory diagnostics business—anchored by long-term reagent contracts and a 2,000-analyzer installed base—that now drives mid-to-high single-digit organic growth, augmented by inflation-linked pricing and share gains. Quidel's transfusion medicine and point-of-care segments provide additional recurring revenue, while the acquisition of LEX Diagnostics positions molecular diagnostics for profitable growth. Recent results confirm the inflection: in Q1-25, laboratories and point-of-care grew organically 7% and 8% respectively, and margins expanded 450bps YoY, with guidance reiterated despite UK tariff headwinds. Structural margin repair is underway, with management targeting 200bps of annual EBITDA expansion, reaching 26–27% by 2028, and free cash flow conversion exceeding 50% as integration costs roll off and leverage declines from >4x to ~3x by 2026. The stock, down 30% on unfounded Chinese tariff fears, trades at ~13–14% 2026E FCF yield. Applying a conservative 10x 2028E EBITDA implies a tripling of the share price, with additional upside from capital returns as leverage falls. Upcoming catalysts—margin expansion, deleveraging, and a Q3-25 investor day—set up an asymmetric risk/reward profile. Previously, we covered a on Medtronic plc (MDT) by Investing Intel in May 2025, which highlighted the company's strong Q4 FY2025 results, broad-based growth, and plans to spin off its diabetes unit to unlock value. The company's stock price has appreciated approximately 15% since our coverage, as the thesis played out. Novana shares a similar view but emphasizes QuidelOrtho's structural growth and operational turnaround. QuidelOrtho Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held QDEL at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of QDEL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
07-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From QuidelOrtho's Q1 Earnings Call
QuidelOrtho's first quarter results received a strong positive reaction from the market, driven by better-than-expected profitability and stable core business performance despite a year-over-year revenue decline. Management attributed the quarter's momentum to cost-saving initiatives and robust growth in its labs and immunohematology businesses. CEO Brian Blaser highlighted that, excluding COVID and donor screening, the company achieved mid-single-digit revenue growth, largely due to strong clinical chemistry and immunoassay testing, as well as a solid flu season. Management emphasized that the company's operational discipline and focused strategy led to significant improvements in margins and earnings. Blaser stated, 'Our business faced unique challenges and an increasingly dynamic environment. The organization came together around our common mission with our customers at the center of everything we do.' Is now the time to buy QDEL? Find out in our full research report (it's free). Revenue: $692.8 million vs analyst estimates of $689.8 million (2.6% year-on-year decline, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.59 (24.9% beat) Adjusted EBITDA: $159.8 million vs analyst estimates of $149.4 million (23.1% margin, 7% beat) The company reconfirmed its revenue guidance for the full year of $2.71 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.32 at the midpoint EBITDA guidance for the full year is $595 million at the midpoint, in line with analyst expectations Operating Margin: 4.7%, up from -247% in the same quarter last year Constant Currency Revenue fell 1.1% year on year (-15.5% in the same quarter last year) Market Capitalization: $2.04 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Conor McNamara (RBC): Asked how much of the tariff cost could be offset by pricing given the prevalence of reagent rental contracts. CEO Brian Blaser responded that selective pricing actions are possible but must consider market competitiveness, referencing the company's pandemic-era experience with inflation pass-through. Patrick Donnelly (Citi): Sought details on tariff exposures and confidence in mitigation. CFO Joe Busky explained that most products are U.S.-made, with primary tariff concerns relating to immunoassay products from the UK; he reiterated confidence that mitigation actions would fully offset gross impacts. Patrick Donnelly (Citi): Inquired about the Savanna program's ongoing commitment and timing. Blaser stressed a focus on completing the FDA submission, calling molecular diagnostics a priority while declining to speculate on outcomes beyond current milestones. Andrew Brackmann (William Blair): Questioned the basis for China growth guidance. Busky cited strong performance in labs and immunohematology, noting that visibility into these recurring businesses supports confidence in mid- to high-single-digit growth for the year. Jack Meehan (Nephron Research): Asked whether a shift toward flu combo testing is structural and implications if COVID revenues decline. Management highlighted the durability of the combo test, stating it continues to provide stable revenue despite a year-over-year drop in standalone COVID testing. In the coming quarters, our team will closely watch (1) the pace and effectiveness of the company's tariff mitigation strategies, (2) the FDA submission and potential approval timeline for the Savanna respiratory panel, and (3) sustained execution of cost control initiatives and their impact on margins. We will also monitor demand trends in key regions and the durability of the core labs segment as further indicators of performance. QuidelOrtho currently trades at $30.21, up from $25.82 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Yahoo
11-06-2025
- Business
- Yahoo
QDEL Q1 Earnings Call: Cost Savings and Tariff Mitigation Anchor 2025 Outlook
Healthcare diagnostics company QuidelOrtho (NASDAQ:QDEL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.6% year on year to $692.8 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $2.71 billion at the midpoint. Its non-GAAP profit of $0.74 per share was 24.9% above analysts' consensus estimates. Is now the time to buy QDEL? Find out in our full research report (it's free). Revenue: $692.8 million vs analyst estimates of $689.8 million (2.6% year-on-year decline, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.59 (24.9% beat) Adjusted EBITDA: $159.8 million vs analyst estimates of $149.4 million (23.1% margin, 7% beat) The company reconfirmed its revenue guidance for the full year of $2.71 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.32 at the midpoint EBITDA guidance for the full year is $595 million at the midpoint, in line with analyst expectations Operating Margin: 4.7%, up from -247% in the same quarter last year Market Capitalization: $2.09 billion QuidelOrtho's first quarter results were shaped by growth in its core laboratories segment, stable immunohematology performance, and a robust flu testing season, offset by lower COVID-related and donor screening revenues. CEO Brian Blaser highlighted that the labs business, now over half of total revenue, delivered 7% year-over-year growth, while immunohematology grew 4%. Blaser credited the company's ongoing cost reduction initiatives—including staffing cuts and procurement efficiencies—for a 450 basis point improvement in adjusted EBITDA margin. The company also benefited from increased sales of its COVID-flu combination tests, which Blaser described as showing 'very stable performance,' helping mitigate the broader decline in COVID-only testing volumes. Management characterized the quarter as further evidence that its 2024 operational changes are positively impacting profitability and business stability. Looking ahead, QuidelOrtho's management sees its narrowed set of strategic priorities—expanding platform content, margin improvement, and targeted commercial execution—as key drivers for 2025. Blaser emphasized the company's plans to fully offset anticipated tariff headwinds, noting, 'We believe the incremental actions we are taking are sufficient to fully offset the tariff impacts as they stand today.' The company expects recurring revenues from consumables to underpin stability, supported by a diversified manufacturing footprint. CFO Joe Busky added that visibility into labs and immunohematology growth in China supports a mid- to high-single-digit outlook for that market, assuming the tariff environment remains unchanged. Management remains focused on delivering cost savings and maintaining profitability targets, while monitoring for potential shifts in COVID and flu testing demand. Management attributed the quarter's performance to solid growth in non-COVID segments, benefits from prior cost-reduction actions, and strong execution in the labs and flu testing businesses. Labs business momentum: Core laboratories led growth, with consistent demand in clinical chemistry and immunoassay testing, representing over half of Q1 revenue. Immunohematology stability: The immunohematology segment maintained its global leadership with steady 4% growth, particularly benefiting from strength in the Europe, Middle East, and Africa region. Flu and combo testing resilience: Sales of flu tests and the COVID-flu combination test remained strong, offsetting the expected decline in pure COVID testing. The durability of the combo product contributed to recurring revenue streams. Cost savings initiatives: Operational changes—including staff reductions, procurement efficiencies, and expense controls—were credited with expanding non-GAAP margins and reducing operating costs. Management expects further incremental savings in 2025. Tariff mitigation efforts: The company outlined a multi-pronged strategy to counter expected $30–40 million tariff headwinds. Actions include re-sourcing materials, adjusting supply chains, selective pricing, and ongoing inventory repositioning. Management stated these steps are expected to fully neutralize tariff effects on financial results. QuidelOrtho's outlook for 2025 is anchored by recurring revenue growth in core segments, ongoing cost control, and strategies to manage external headwinds such as tariffs. Recurring consumables revenue: Management highlighted that over 90% of sales stem from consumables, providing a stable revenue foundation less susceptible to one-time instrument sales volatility. The company expects this model to drive consistent growth, especially in labs and immunohematology. Cost discipline and savings: The company is on track to realize the remainder of its $100 million annualized cost savings program, with additional procurement and cash flow initiatives expected to deliver a further $30–50 million in savings during 2025. These efforts are intended to support margin expansion even as the company faces external cost pressures. Tariff and macro environment management: Expected tariff headwinds are being addressed through supply chain adjustments, selective price increases, and cost reductions. Management expressed confidence that these measures will allow QuidelOrtho to maintain its guidance even if the tariff situation evolves, but noted that ongoing monitoring is required due to the dynamic nature of global trade policy. In the coming quarters, the StockStory team will be watching (1) the pace at which cost savings and procurement initiatives translate into sustained margin gains, (2) the impact of tariff mitigation actions on both supply chain flexibility and pricing power, and (3) any changes in demand for respiratory testing—particularly the COVID-flu combination test. Progress on Savanna respiratory panel submission and broader product pipeline developments will also serve as key signposts for tracking execution. QuidelOrtho currently trades at a forward P/E ratio of 12.1×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
08-05-2025
- Business
- Yahoo
QuidelOrtho (NASDAQ:QDEL) Reports Q1 In Line With Expectations, Stock Soars
Healthcare diagnostics company QuidelOrtho (NASDAQ:QDEL) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.6% year on year to $692.8 million. The company's outlook for the full year was close to analysts' estimates with revenue guided to $2.71 billion at the midpoint. Its non-GAAP profit of $0.74 per share was 25% above analysts' consensus estimates. Is now the time to buy QuidelOrtho? Find out in our full research report. QuidelOrtho (QDEL) Q1 CY2025 Highlights: Revenue: $692.8 million vs analyst estimates of $689.8 million (2.6% year-on-year decline, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.59 (25% beat) Adjusted EBITDA: $159.8 million vs analyst estimates of $149.4 million (23.1% margin, 7% beat) The company reconfirmed its revenue guidance for the full year of $2.71 billion at the midpoint Management reiterated its full-year Adjusted EPS guidance of $2.32 at the midpoint EBITDA guidance for the full year is $595 million at the midpoint, in line with analyst expectations Operating Margin: 4.7%, up from -247% in the same quarter last year Constant Currency Revenue fell 1.1% year on year (-15.5% in the same quarter last year) Market Capitalization: $1.75 billion 'We delivered solid first quarter performance driven by growth in our Labs business and the strength of our recurring revenue business model,' said Brian J. Blaser, President and Chief Executive Officer, QuidelOrtho. Company Overview Born from the 2022 merger of Quidel and Ortho Clinical Diagnostics, QuidelOrtho (NASDAQ:QDEL) develops and manufactures diagnostic testing solutions for healthcare providers, from rapid point-of-care tests to complex laboratory instruments and systems. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, QuidelOrtho's sales grew at an excellent 23.3% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers. QuidelOrtho Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. QuidelOrtho's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.7% over the last two years. QuidelOrtho Year-On-Year Revenue Growth We can better understand the company's sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 8.9% year-on-year declines. Because this number is lower than its normal revenue growth, we can see that foreign exchange rates have boosted QuidelOrtho's performance.
