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In the last-reported quarter, the company’s earnings of $5.36 per share surpassed the Zacks Consensus Estimate by 516.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions and missed the same in the other two, delivering an earnings surprise of 119.5%, on average.
Let’s see how things have shaped up for Quidel prior to this announcement.
Factors at Play
Quidel’s fourth-quarter 2021 revenues are likely to have been driven by its non-COVID business, which the company expects to have received a boost as a result of the flu season. During its third-quarter 2021 earnings call, Quidel confirmed that the flu season, incremental Sofia placements besides the opportunity to increase utilization of the platform, and the launch of new Sofia gastrointestinal assays along with the Savanna testing platform are factors that might have considerably driven fourth-quarter revenues.
In fact, per the preliminary announcement, revenues for fourth-quarter 2021 are estimated to be $633-$637 million on a reported basis.
Although Quidel has been strengthening its foothold in the pharmacy segment of the over-the-counter space and expects to make further inroads once its Rutherford, CA facility becomes fully operational, manufacturing capacity constraints are likely to have weighed on the company’s performance in the to-be-reported quarter.
Quidel confirmed receiving a federal government award in the third quarter of 2021, which was initially estimated for 51 million QuickVue at-home COVID-19 tests worth approximately $284 million. However, the company confirmed during its third-quarter earnings call that it had received the order for over $500 million in total, which it expects will take time to fulfill. This is also likely to have benefited Quidel’s top line in the fourth quarter.
Sustained strong sales of Quidel’s Lyra testing solutions is another likely contributor to the company’s top line in the to-be-reported quarter.
In December 2021, Quidel confirmed the efficacy of its antigen tests concerning continued detection of COVID-19 variants, including Omicron. The same month, the company entered into a definitive agreement to acquire Ortho Clinical Diagnostics Holdings plc. These developments buoy optimism on the stock.
According to the preliminary announcement, the company’s COVID-19 revenues for the quarter are expected to be approximately $510 million. Quidel also confirmed selling around 65 million QuickVue COVID-19 antigen tests and more than four million Sofia SARS antigen tests during the fourth quarter.
Per Quidel, the strong revenue uptick in the fourth quarter resulted from a significant surge in demand in multiple markets for its SARS-related products on the back of continued rise in infections due to the spread of the highly contagious Delta and Omicron variants of coronavirus. Quidel also confirmed that it has increased its installed base of Sofia analyzers beyond 76,000 instrument placements, thereby expanding its footprint at the point-of-care testing. This has also led to increasing opportunities in the professional setting to introduce the company’s entire portfolio of assays to patients and providers, which drove the quarterly revenues.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate of $430 million for total revenues implies a decline of 46.9% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at $4.89, implying a plunge of 55.8% from the prior-year period’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Quidel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #1.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank of 2. AMN has an estimated long-term growth rate of 16.2%.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.83% and is a Zacks #2 Ranked stock. HSIC has an estimated long-term growth rate of 11.8%.
Henry Schein’s earnings surpassed estimates in the trailing four quarters, with the average surprise being 21.9%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +5.38% and a Zacks Rank of 2 at present. MDRX has an estimated long-term growth rate of 11.1%.
Allscripts’ earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 34.1%.
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Quidel (QDEL) to Report Q4 Earnings: What's in the Offing?
Quidel Corporation (QDEL - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, after the closing bell.
In the last-reported quarter, the company’s earnings of $5.36 per share surpassed the Zacks Consensus Estimate by 516.1%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on two occasions and missed the same in the other two, delivering an earnings surprise of 119.5%, on average.
Let’s see how things have shaped up for Quidel prior to this announcement.
Factors at Play
Quidel’s fourth-quarter 2021 revenues are likely to have been driven by its non-COVID business, which the company expects to have received a boost as a result of the flu season. During its third-quarter 2021 earnings call, Quidel confirmed that the flu season, incremental Sofia placements besides the opportunity to increase utilization of the platform, and the launch of new Sofia gastrointestinal assays along with the Savanna testing platform are factors that might have considerably driven fourth-quarter revenues.
In fact, per the preliminary announcement, revenues for fourth-quarter 2021 are estimated to be $633-$637 million on a reported basis.
Although Quidel has been strengthening its foothold in the pharmacy segment of the over-the-counter space and expects to make further inroads once its Rutherford, CA facility becomes fully operational, manufacturing capacity constraints are likely to have weighed on the company’s performance in the to-be-reported quarter.
Quidel Corporation Price and EPS Surprise
Quidel Corporation price-eps-surprise | Quidel Corporation Quote
Quidel confirmed receiving a federal government award in the third quarter of 2021, which was initially estimated for 51 million QuickVue at-home COVID-19 tests worth approximately $284 million. However, the company confirmed during its third-quarter earnings call that it had received the order for over $500 million in total, which it expects will take time to fulfill. This is also likely to have benefited Quidel’s top line in the fourth quarter.
Sustained strong sales of Quidel’s Lyra testing solutions is another likely contributor to the company’s top line in the to-be-reported quarter.
In December 2021, Quidel confirmed the efficacy of its antigen tests concerning continued detection of COVID-19 variants, including Omicron. The same month, the company entered into a definitive agreement to acquire Ortho Clinical Diagnostics Holdings plc. These developments buoy optimism on the stock.
According to the preliminary announcement, the company’s COVID-19 revenues for the quarter are expected to be approximately $510 million. Quidel also confirmed selling around 65 million QuickVue COVID-19 antigen tests and more than four million Sofia SARS antigen tests during the fourth quarter.
Per Quidel, the strong revenue uptick in the fourth quarter resulted from a significant surge in demand in multiple markets for its SARS-related products on the back of continued rise in infections due to the spread of the highly contagious Delta and Omicron variants of coronavirus. Quidel also confirmed that it has increased its installed base of Sofia analyzers beyond 76,000 instrument placements, thereby expanding its footprint at the point-of-care testing. This has also led to increasing opportunities in the professional setting to introduce the company’s entire portfolio of assays to patients and providers, which drove the quarterly revenues.
The Estimate Picture
For fourth-quarter 2021, the Zacks Consensus Estimate of $430 million for total revenues implies a decline of 46.9% from the prior-year quarter’s reported figure.
The consensus estimate for earnings per share is pegged at $4.89, implying a plunge of 55.8% from the prior-year period’s reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. However, this is not the case here as you can see:
Earnings ESP: Quidel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #1.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
AMN Healthcare Services, Inc. (AMN - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank of 2. AMN has an estimated long-term growth rate of 16.2%.
AMN Healthcare’s earnings surpassed estimates in the trailing four quarters, with the average surprise being 19.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Henry Schein, Inc. (HSIC - Free Report) has an Earnings ESP of +0.83% and is a Zacks #2 Ranked stock. HSIC has an estimated long-term growth rate of 11.8%.
Henry Schein’s earnings surpassed estimates in the trailing four quarters, with the average surprise being 21.9%.
Allscripts Healthcare Solutions (MDRX - Free Report) has an Earnings ESP of +5.38% and a Zacks Rank of 2 at present. MDRX has an estimated long-term growth rate of 11.1%.
Allscripts’ earnings surpassed estimates in all of the trailing four quarters, with the average surprise being 34.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.