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In the last-reported quarter, the company’s earnings of $11.66 per share surpassed the Zacks Consensus Estimate by 25.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed the same in the other one, delivering an earnings surprise of 138.3%, on average.
Let’s see how things have shaped up for QuidelOrtho prior to this announcement:
Factors at Play
QuidelOrtho’s second-quarter 2022 revenues are likely to have been driven by COVID and non-COVID businesses, similar to what the company witnessed in the first quarter. During its first-quarter 2021 earnings call in May, QuidelOrtho confirmed that over the past few months, strong demand for rapid immunoassay products like QuickVue At-Home OTC (over-the-counter) COVID-19 tests had been recorded. The company also witnessed strong momentum from its non-COVID sales that included strength in its Sofia ABC combination test for Influenza + SARS and Sofia Influenza tests. This trend in the non-COVID business is likely to have continued in the to-be-reported quarter as well on f the observation that flu had continued to linger into the second quarter.
QuidelOrtho’s highly-automated QuickVue manufacturing facility in Carlsbad, CA is also likely to have continued to support the strong demand for its products, which in turn may have helped to maintain the company’s top-line growth in the second quarter. However, softening demand for QuidelOrtho’s COVID-related products and the company’s expectations for this trend to continue is likely to weigh on its second-quarter revenues.
During the first-quarter earnings call, QuidelOrtho confirmed that the completion of the acquisition of Ortho Clinical Diagnostics will likely more than double its market opportunity among the point-of-care, clinical laboratory and transfusion medicine segments. The buyout (which closed at May-end) was expected to integrate the complementary nature of Quidel’s and Ortho’s portfolios and create ample cross-selling opportunities across a deep and diverse mix of customers and channels to significantly accelerate the market penetration worldwide after closing. This is also likely to have a positive impact on the second quarter’s overall top line of the company.
Other likely top contributors to the second-quarter revenues include the Lyra SARS-CoV-2 products, Solana and Savanna systems, and DHI (Diagnostic Hybrids) Respiratory products on the back of sustained strong demand.
QuidelOrtho’s Savanna MDx instrumented system, launched in select ex-U.S. markets, is expected to have witnessed strong customer adoption. This is another factor which is likely to drive the to-be-reported quarter’s top line.
Over the past few months, QuidelOrtho has been witnessing a demand in emerging markets, which could be captured via both telehealth technology and digital health capabilities, thereby expanding patient access to a wide range of point-of-care and OTC diagnostic products. In this space, the company offers both Sofia Q and an innovative self-test mobile application — QVue Business — to help address enterprise and employee health use cases. These products are likely to have witnessed robust customer adoption in the to-be-reported quarter, thereby contributing to revenue growth.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate for total revenues is currently pegged at $475.9 million, implying a surge of 169.5% from the prior-year period’s reported number.
The consensus estimate for earnings per share is pegged at $3.38, implying a surge of 350.7% 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: QuidelOrtho 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 #2.
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:
Centessa Pharmaceuticals plc (CNTA - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 2. CNTA has an estimated growth rate of 20.6% for 2023.
Centessa Pharmaceuticals’ earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, with the average being 6.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +20.00% and is a Zacks #2 Ranked stock. GDRX has an estimated long-term growth rate of 16.6%.
GoodRx Holdings’ earnings surpassed estimates in two of the trailing four quarters, lagged the same in one and broke even in one, the average being 6.9%.
Image: Bigstock
What's in the Offing for QuidelOrtho (QDEL) in Q2 Earnings?
QuidelOrtho Corporation (QDEL - Free Report) is scheduled to report second-quarter 2022 results on Aug 4, after the closing bell.
In the last-reported quarter, the company’s earnings of $11.66 per share surpassed the Zacks Consensus Estimate by 25.7%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on three occasions and missed the same in the other one, delivering an earnings surprise of 138.3%, on average.
Let’s see how things have shaped up for QuidelOrtho prior to this announcement:
Factors at Play
QuidelOrtho’s second-quarter 2022 revenues are likely to have been driven by COVID and non-COVID businesses, similar to what the company witnessed in the first quarter. During its first-quarter 2021 earnings call in May, QuidelOrtho confirmed that over the past few months, strong demand for rapid immunoassay products like QuickVue At-Home OTC (over-the-counter) COVID-19 tests had been recorded. The company also witnessed strong momentum from its non-COVID sales that included strength in its Sofia ABC combination test for Influenza + SARS and Sofia Influenza tests. This trend in the non-COVID business is likely to have continued in the to-be-reported quarter as well on f the observation that flu had continued to linger into the second quarter.
QuidelOrtho’s highly-automated QuickVue manufacturing facility in Carlsbad, CA is also likely to have continued to support the strong demand for its products, which in turn may have helped to maintain the company’s top-line growth in the second quarter. However, softening demand for QuidelOrtho’s COVID-related products and the company’s expectations for this trend to continue is likely to weigh on its second-quarter revenues.
QuidelOrtho Corporation Price and EPS Surprise
QuidelOrtho Corporation price-eps-surprise | QuidelOrtho Corporation Quote
During the first-quarter earnings call, QuidelOrtho confirmed that the completion of the acquisition of Ortho Clinical Diagnostics will likely more than double its market opportunity among the point-of-care, clinical laboratory and transfusion medicine segments. The buyout (which closed at May-end) was expected to integrate the complementary nature of Quidel’s and Ortho’s portfolios and create ample cross-selling opportunities across a deep and diverse mix of customers and channels to significantly accelerate the market penetration worldwide after closing. This is also likely to have a positive impact on the second quarter’s overall top line of the company.
Other likely top contributors to the second-quarter revenues include the Lyra SARS-CoV-2 products, Solana and Savanna systems, and DHI (Diagnostic Hybrids) Respiratory products on the back of sustained strong demand.
QuidelOrtho’s Savanna MDx instrumented system, launched in select ex-U.S. markets, is expected to have witnessed strong customer adoption. This is another factor which is likely to drive the to-be-reported quarter’s top line.
Over the past few months, QuidelOrtho has been witnessing a demand in emerging markets, which could be captured via both telehealth technology and digital health capabilities, thereby expanding patient access to a wide range of point-of-care and OTC diagnostic products. In this space, the company offers both Sofia Q and an innovative self-test mobile application — QVue Business — to help address enterprise and employee health use cases. These products are likely to have witnessed robust customer adoption in the to-be-reported quarter, thereby contributing to revenue growth.
The Estimate Picture
For second-quarter 2022, the Zacks Consensus Estimate for total revenues is currently pegged at $475.9 million, implying a surge of 169.5% from the prior-year period’s reported number.
The consensus estimate for earnings per share is pegged at $3.38, implying a surge of 350.7% 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: QuidelOrtho 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 #2.
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:
Centessa Pharmaceuticals plc (CNTA - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 2. CNTA has an estimated growth rate of 20.6% for 2023.
Centessa Pharmaceuticals’ earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, with the average being 6.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
STERIS plc (STE - Free Report) has an Earnings ESP of +1.85% and is a Zacks #1 Rank stock. STE has an estimated growth rate of 9.9% for fiscal 2023.
STERIS’ earnings surpassed estimates in all the trailing four quarters, with the average surprise being 9.2%.
GoodRx Holdings, Inc. (GDRX - Free Report) has an Earnings ESP of +20.00% and is a Zacks #2 Ranked stock. GDRX has an estimated long-term growth rate of 16.6%.
GoodRx Holdings’ earnings surpassed estimates in two of the trailing four quarters, lagged the same in one and broke even in one, the average being 6.9%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.