Latest news with #QDEL
Yahoo
06-08-2025
- Business
- Yahoo
QuidelOrtho Stock Gains Following Q2 Earnings Beat, Margins Expand
QuidelOrtho Corporation QDEL delivered adjusted earnings per share (EPS) of 12 cents in second-quarter 2025 against the year-earlier loss of 7 cents. The figure surpassed the Zacks Consensus Estimate of breakeven. The adjustments include expenses related to the amortization of intangibles, and acquisition and integration costs, among others. GAAP loss per share for the quarter was $3.77 compared with the year-earlier loss of $2.2 per share. QDEL's Revenues in Detail QuidelOrtho registered revenues of $613.9 million in the second quarter of 2025, which decreased 3.6% year over year on a reported basis and 3.9% at constant exchange rate (CER). However, the figure surpassed the Zacks Consensus Estimate by 0.4%. In the second quarter, Respiratory revenues were $46.7 million (down 19.5% on a reported basis and 19.9% at CER), while Non-Respiratory revenues were $567.2 million (down 2% on a reported basis and 2.2% at CER). Shares of this company gained nearly 12.8% in yesterday's after-market hours. The company's shares have plunged 46.8% in the year-to-date period against the industry's growth of 4.9%. The broader S&P 500 Index has increased 7.4% in the same time frame. Image Source: Zacks Investment Research QuidelOrtho's Business Units in Detail QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening. In the second quarter, Labs revenues were $369.7 million, up 4.4% on a reported basis and 4.6% at CER. Immunohematologyrevenues were $132.3 million in the second quarter, up 4.3% and 2.9% on a reported basis and at CER, respectively. Donor Screening revenues were $13.3 million in the second quarter, down 61.2% and 61.4% on a reported basis and at CER, respectively. Point of Care revenues amounted to $93 million in the second quarter, reflecting a decline of 20.6%on a reported basis and 20.9% at CER. Molecular Diagnosticsrevenues totaled $5.6million in the second quarter, up 27.3% and 24.2% on a reported basis and at CER, respectively. QDEL's Geographical Distribution Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China and Other regions (which include Latin America, Japan and other Asia-Pacific markets). Revenues from North Americaamounted to $310.7million, reflecting a decline of 11.3% and 11.6% on a reported basis and at CER, respectively. EMEA revenues amounted to $87.3million, reflecting an increase of 7.6% on a reported basis and 3.3% at CER. Revenues from China amounted to $83.4million, reflecting an increase of 2.2% on a reported basis as well as at CER. Revenues from Other regions amounted to $132.5million, reflecting an uptick of 6.7% on a reported basis and 9.6% at CER. QuidelOrtho's Margin Trend In the quarter under review, QuidelOrtho's adjusted gross profit declined 0.4% year over year to $280.5 million. However, the adjusted gross margin expanded 150 basis points (bps) to 45.7%. Adjusted selling, marketing and administrative expenses fell 5.9% year over year to $170 million. Adjusted research and development expenses declined 18.6% year over year to $45.2 million. Adjusted operating expenses of $215.2 million decreased 8.9% year over year. Adjusted operating profit totaled $60.2 million, reflecting a 67.7% improvement from the prior-year quarter's level. Adjusted operating margin in the second quarter expanded 420 bps to 9.8%. QuidelOrtho Corporation Price, Consensus and EPS Surprise QuidelOrtho Corporation price-consensus-eps-surprise-chart | QuidelOrtho Corporation Quote QDEL's Financial Position QuidelOrtho exited the second quarter of 2025 with cash and cash equivalents of $151.7 million compared with $127.1 million at the first-quarter end. Total debt (including short-term debt) at the end of second-quarter 2025 was $2.61 billion compared with $2.49 billion at the first-quarter end. Cumulative net cash provided by operating activities at the end of the second quarter was $18.8 million, against net cash used in operating activities of $98.6 million a year ago. QuidelOrtho's Guidance QuidelOrtho has reiterated its financial outlook for 2025. Total revenues are expected to lie in the range of$2.60 billion-$2.81 billion billion. The Zacks Consensus Estimate is pegged at $2.72 billion. For the full year, QuidelOrtho projects stable growth across most business lines, with strength in its Labs and Immunohematology businesses. In China, despite early second-quarter softness caused by delayed shipments related to evolving tariffs, full-year growth is still expected to be in the mid- to high-single digits. This optimism is supported by strong performance in clinical chemistry and immunohematology, with limited impact from the country's volume-based procurement policies. Within theRespiratory revenues for the full year, COVID-19 revenues are expected to be in the range of $110-$140 million for 2025, assuming a summer spike consistent with trends observed over the past two years. Adjusted EPS is expected to lie between $2.07 and $2.57. The Zacks Consensus Estimate is pegged at $2.39. Our Take QuidelOrtho ended the second quarter of 2025 with better-than-expected results. The company registered robust revenues from its Labs, Immunohematology and Molecular Diagnostics business units and EMEA, China and Other regions, which were encouraging. The expansion of margins bodes well. QDEL witnessed robust bottom-line growth as well. Per management,QuidelOrtho's underlying business continued to perform well in the second quarter of 2025, led by steady growth in its Labs and Immunohematology units. The company highlighted strong recurring revenue from long-term contracts and an expanding installed base of integrated and automated lab systems. Management reiterated the success of its commercial and operational improvement initiatives, pointing to a 330-basis point year-over-year improvement in adjusted EBITDA margin and a 271% rise in adjusted diluted EPS. The company remains focused on driving incremental margin improvement through its ongoing cost-reduction actions, including indirect procurement efforts and manufacturing consolidation. It reaffirmed its goal of achieving mid- to high-20% EBITDA margins by mid-2027. QuidelOrtho now expects a gross tariff impact of $20–$25 million in 2025, down from its previous estimate of $30–$40 million. The reduction is driven by effective mitigation efforts that are already being implemented. These include changes in the origin of raw materials, repositioning of inventory, selective supplier shifts, targeted pricing actions, and other procurement savings. The company stated that these measures are expected to fully offset the tariff headwinds and have already been factored into its unchanged full-year 2025 guidance. Management emphasized that they are continuing to monitor global trade dynamics and are confident in their ability to navigate the environment effectively. That said, top-line performance remained soft. The company continued to face headwinds from the ongoing wind-down of its Donor Screening business and a significant decline in COVID-related testing. The Point of Care segment was also pressured by reduced demand in respiratory testing, while the Triage business saw a slight dip due to timing-related factors in China. Regionally, weakness in North America persisted, and although China delivered modest growth, management took a more measured stance on full-year expectations amid reimbursement and procurement-related challenges. Despite these pressures, QuidelOrtho remains optimistic about its long-term prospects in China, citing low market penetration and a strategic focus on stat labs as key advantages. QDEL's Zacks Rank and Key Picks QDEL currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX. Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today's Zacks #1 Rank stocks here. Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%. West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1. West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%. Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy). Boston Scientific has a long-term estimated growth rate of 14%. BSX's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
- Business
- Yahoo
QuidelOrtho Corp (QDEL) Q2 2025 Earnings Call Highlights: Navigating Revenue Challenges and ...
Total Revenue: $614 million, decreased from $637 million in the prior year. Revenue Growth (excluding COVID and Donor Screening): 1% growth. Adjusted EBITDA Margin: Improved by 330 basis points to 17%. Adjusted Gross Profit Margin: 45.7%, up from 44.2% in the prior year. Adjusted Diluted EPS: $0.12, compared to a loss of $0.07 in the prior year. Net Debt: Increased by $81 million, with $152 million in cash and $390 million in borrowings. Adjusted Free Cash Flow: Negative $32 million. COVID Revenue: $9 million, decreased by 52%. Molecular Revenue Growth: 24% increase. Full-Year Revenue Guidance: $2.6 billion to $2.81 billion. Full-Year Adjusted EBITDA Guidance: $575 million to $615 million. Full-Year Adjusted Diluted EPS Guidance: $2.07 to $2.57. Warning! GuruFocus has detected 7 Warning Signs with QDEL. Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points QuidelOrtho Corp (NASDAQ:QDEL) reported a 1% revenue growth excluding COVID and Donor Screening, with strong performance in Labs and Immunohematology business units. The company achieved a 330 basis point improvement in adjusted EBITDA margin, reflecting successful cost structure actions. QuidelOrtho Corp (NASDAQ:QDEL) saw significant growth in international markets, with Latin America, Japan, Asia Pacific, and EMEA regions showing strong performance. The company is optimistic about its molecular strategy, particularly the acquisition of LEX Diagnostics, which is expected to enhance its growth potential. QuidelOrtho Corp (NASDAQ:QDEL) earned first place rankings by ServiceTrac for best overall clinical chemistry and integrated system performance, highlighting its customer-focused approach. Negative Points North America revenue declined by 12% during the quarter, attributed to seasonally low viral prevalence. COVID-related revenue decreased significantly, impacting overall revenue figures and leading to a revised full-year COVID revenue guidance. The company is facing potential tariff headwinds estimated at $20 million to $25 million for 2025, although this is lower than previous estimates. The Donor Screening business is being wound down, contributing to a decrease in total revenue. QuidelOrtho Corp (NASDAQ:QDEL) experienced a decrease in Point of Care revenue by 21%, primarily due to lower COVID sales. Q & A Highlights Q: Can you walk through your respiratory expectations for the remainder of the year and how you arrived at your current COVID guidance? A: Joseph Busky, CFO: We are not changing our flu assumptions; the guidance remains the same. The only change is in our COVID revenue guidance. We are seeing a rise in COVID positivity, but lower ED visits and hospitalizations suggest less disease severity and likely less testing. We expect higher COVID revenue in the second half but have adjusted our full-year COVID revenue guidance to $70 million to $100 million, down from $110 million to $140 million. Q: Can you discuss the visibility and potential risks in your China revenue growth forecast? A: Brian Blaser, CEO: Our business in China is primarily clinical chemistry, where we have good pricing due to our dry-slide technology. We are underpenetrated in immunoassays, which presents an opportunity. Despite some pricing and volume actions in the market, these have had minimal impact on us. We expect higher growth in the second half, leading to mid-single-digit growth for the full year. Q: Can you explain the moving pieces affecting EBITDA, particularly with the discontinuation of Savanna and tariff impacts? A: Joseph Busky, CFO: The COVID revenue range is reduced by $40 million, impacting gross profit and adjusted EBITDA by $20 million to $25 million. This is offset by reduced tariff impacts of $15 million to $20 million and $5 million to $10 million from the Savanna discontinuation. These factors net out, keeping our adjusted EBITDA and EPS guidance unchanged. Q: What is the strategy for the molecular portfolio with the potential acquisition of LEX Diagnostics? A: Brian Blaser, CEO: The LEX platform offers ultra-fast real-time PCR results and a competitive value proposition. We plan to use both the current Sofia channel and the legacy Ortho commercial team for placements. We aim to expand the test menu beyond respiratory to areas like women's health and STI, with placements expected to scale quickly post-approval. Q: How are you planning for free cash flow in the second half of the year? A: Joseph Busky, CFO: We expect to generate $140 million to $160 million in free cash flow in the second half, aligning with our target of 25% to 30% of adjusted EBITDA. This is based on the seasonality of our business and historical performance, with more cash flow expected in the latter half of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
18-06-2025
- Business
- Yahoo
Should Value Investors Buy QuidelOrtho (QDEL) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks. In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment. One company to watch right now is QuidelOrtho (QDEL). QDEL is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.54, while its industry has an average P/E of 21.08. Over the past 52 weeks, QDEL's Forward P/E has been as high as 25.36 and as low as 9.36, with a median of 14.18. Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. QDEL has a P/S ratio of 0.69. This compares to its industry's average P/S of 1.34. Finally, investors will want to recognize that QDEL has a P/CF ratio of 11.91. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. QDEL's current P/CF looks attractive when compared to its industry's average P/CF of 12. QDEL's P/CF has been as high as 15.25 and as low as 5.04, with a median of 8.88, all within the past year. Value investors will likely look at more than just these metrics, but the above data helps show that QuidelOrtho is likely undervalued currently. And when considering the strength of its earnings outlook, QDEL sticks out as one of the market's strongest value stocks. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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
15-05-2025
- Business
- Yahoo
Why QuidelOrtho (QDEL) is a Top Growth Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike. Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. San Diego, CA-based QuidelOrtho Corporation (earlier known as Quidel Corporation) is a key player in the provision of in-vitro diagnostics technologies designed for point-of-care settings, clinical labs and transfusion medicine. The company sells its products directly to end users and distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent-care clinics, leading universities, retail clinics, pharmacies and wellness screening centers. QDEL boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 27% year-over-year for 2025, while Wall Street anticipates its top line to improve by 2.3%. Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.01 to $2.35 per share. QDEL boasts an average earnings surprise of 70.8%. Looking at cash flow, QuidelOrtho is expected to report cash flow growth of 226% this year; QDEL has generated cash flow growth of 68.8% over the past three to five years. QDEL should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
