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Quidel (QDEL) to Report Q3 Earnings: What's in the Offing?

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Quidel Corporation (QDEL - Free Report) is scheduled to report third-quarter fiscal 2020 results on Oct 29, after market close.

The company reported an earnings surprise of 66.1% in the last reported quarter. Further, it beat estimates in the trailing four quarters, the average surprise being 26.1%.

Q3 Estimates

The Zacks Consensus Estimate for total revenues of $476.1 million indicates growth of 276.4% from the prior-year quarter figure. Also, the consensus mark for earnings per share (EPS) is pegged at $4.58, suggesting a 554.3% surge from the prior-year quarter figure.

Factors at Play

Quidel is likely to have witnessed solid performance by its COVID-19 Molecular Diagnostics and Rapid Immunoassay products in the fiscal third quarter.

In the last-reported quarter, Quidel’s Molecular Diagnostic Solutions delivered robust results. This momentum is likely to have continued in the fiscal third quarter. Strong sales of Lyra SARS-CoV-2 and Lyra Direct SARS-CoV-2 products are expected to have driven growth in the to-be-reported quarter.

The company is likely to have witnessed an uptick in rapid immunoassay revenues in the fiscal third quarter on growth in sales derived from the Sofia platform.

However, Quidel witnessed decline in cardiometabolic and specialized diagnostic solutions revenues in the last reported quarter. This trend is likely to have continued through the fiscal third quarter.

Quidel Corporation Price and EPS Surprise

 

Quidel Corporation Price and EPS Surprise

Quidel Corporation price-eps-surprise | Quidel Corporation Quote

Nonetheless, the overall molecular growth of Lyra product category is expected to have contributed to the third-quarter topline. The progress made with the development of the COVID-19 diagnostic product pipeline, especially the Sofia Serology assay, is expected to have driven fiscal third-quarter performance.

During the fiscal second quarter, Quidel finished the development of Sofia SARS Antigen, gained Emergency Use Authorization (EUA) clearance, and manufactured approximately four million Sofia SARS Antigen cassettes.

These developments are expected to get reflected in fiscal third-quarter results.

Quidel has been making progress within its R&D and instrument systems development teams. This is expected to reflect on fiscal third-quarter results.The solid momentum of Savanna cross-functional product development team is also likely to have driven the third-quarter performance.

In recent times, Sniffles, the company’s next-generation Sofia platform, has been gaining traction, which is also likely to have contributed to the top line in the to-be-reported quarter.

The company is expected to have continued gaining from newer products like Sofia Lyme, Triage, toxicology, High Sense, Troponin and Europe, Triage PLGF and the new Sofia GI products in the quarter as well. These products should account for about $10 million of incremental revenues in fiscal 2020.

What Our Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases chances of an earnings beat. That is the case here as you will see.

Earnings ESP: Quidel has an Earnings ESP of +8.14%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: It carries a Zacks Rank #1.

Other Stocks Worth a Look

Here are a few medical stocks worth considering as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Masimo Corporation (MASI - Free Report) has an Earnings ESP of +10.71% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardinal Health, Inc. (CAH - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank of 2 at present.

IDEXX Laboratories, Inc. (IDXX - Free Report) has an Earnings ESP of +0.35% and is a Zacks #2 Ranked stock.

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