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Quidel Corporation (QDEL) Reports Solid Preliminary Q1 Revenues

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Quidel Corporation (QDEL - Free Report) recently announced preliminary revenues for first-quarter 2022. The company expects to release detailed financial results for the period in May.

As per the preliminary report, first-quarter 2022 revenues are estimated to be $990-$1,000 million on a reported basis, reflecting a surge of 164-166% from the year-ago period.

The company’s COVID-19 revenues for the quarter are expected to be around $836 million. This includes about $657 million of QuickVue COVID-19 test revenues and approximately $138 million of Sofia SARS antigen test revenues.

Quidel also confirmed selling around 113 million QuickVue COVID-19 antigen tests and around 12 million Sofia SARS antigen tests during the first quarter. Apart from this, the company confirmed that it has increased its installed base of Sofia analyzers to 79,000 instrument placements, expanding its footprint at the point-of-care testing. This has also led to increasing opportunities to introduce the company’s full portfolio of assays to patients and healthcare providers.

Despite robust preliminary results, shares of the company fell 3.9% till the last trading following this release.

A Brief Q1 Analysis

Quidel has been observing a robust adoption of its products over the past few months, which has driven up shipments of its SARS tests. The company has been registering strong demand for its QuickVue At-Home OTC (over-the-counter) COVID-19 test and has been ramping up its production to meet the surge in demand. Quidel has also seen a solid uptick in demand for its QuickVue COVID-19 antigen tests and Sofia SARS antigen tests, which has led to its highest quarterly sales volume for tests in the to-be-reported quarter.

Quidel’s immunoassay manufacturing facility in the United States is also likely to have driven the company’s top line in the first quarter.

The company’s preliminary projection of a robust improvement in revenues on the back of solid testing volumes lifts our confidence on the stock.

Price Performance

Shares of the company have lost 16.7% between January and March 2022 compared with the industry’s 9.6% fall and the S&P 500’s 4.7% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

Currently, Quidel sports a Zacks Rank #1 (Strong Buy).

A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , McKesson Corporation (MCK - Free Report) and Henry Schein, Inc. (HSIC - Free Report) .

AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 20%. It currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare has lost 14.7% compared with the industry’s 19.4% fall between January and March.

McKesson, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 11.9%. MCK’s earnings surpassed estimates in the trailing four quarters, the average surprise being 20.6%.

McKesson has gained 23.2% against the industry’s 2.2% fall between January and March.

Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 25.5%. It currently has a Zacks Rank #2.

Henry Schein has gained 12.5% against the industry’s 2.2% fall between January and March.

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