QuidelOrtho Q2 revenue falls but beats expectations

Overview

• QuidelOrtho Q2 revenue of $614 mln beats analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus at $0.12, per LSEG data

Outlook

• QuidelOrtho reiterates full-year 2025 revenue guidance of $2.60 - $2.81 bln

• Company expects full-year adjusted EBITDA of $575 - $615 mln

• QuidelOrtho anticipates adjusted diluted EPS of $2.07 - $2.57 for 2025

• Company sees full-year adjusted EBITDA margin at 22%

Result Drivers

• COST SAVINGS - Achieved $100 mln annualized cost savings from initiatives announced in 2024, improving adjusted EBITDA margin by 330 basis points

• LABS REVENUE GROWTH - Labs revenue grew 4% as reported and 5% in constant currency, indicating strong performance in this segment

• REVENUE DECLINE - Total revenue decreased due to lower COVID-19 and Donor Screening revenue compared to the prior year period

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"

• Wall Street's median 12-month price target for QuidelOrtho Corp is $50.00, about 51.8% above its August 4 closing price of $24.11

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn8spGfra