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QuidelOrtho (QDEL) Reports Solid Preliminary Q3 Revenues

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QuidelOrtho Corporation (QDEL - Free Report) recently announced preliminary revenues for third-quarter 2022. The robust preliminary results drove up the shares of the company by 7.4% in after-hours trading session.

The company is scheduled to release third-quarter results on Nov 2 after the closing bell.

Per the preliminary report, third-quarter 2022 revenues are estimated to be $782-$785 million on a reported basis. The Zacks Consensus Estimate of $655.2 million lies below the preliminary figure.

The company’s COVID-19 revenues for the quarter are expected to be around $171 million. This includes shipments from an unanticipated government order and strong retail demand. The non-COVID-19 product revenue is expected to be in the range of $611-$614 million.

Per management, the to-be-reported quarter will be the first full quarter as a combined company, where the company is reporting robust results. Management is upbeat about the strength of its Transfusion Medicine business and its Sofia platform, which saw portfolio gains besides increased COVID-19 product revenue. The progress on the ramp of QuidelOrtho’s Savanna molecular system also raises management’s optimism.

A Brief Q3 Analysis

QuidelOrtho has been observing a robust adoption of its products over the past few months, which has driven up shipments of its COVID-19 products. The company’s Labs business has been performing well over the past few months while overcoming challenges in China and with global supply chains. QuidelOrtho is also expected to witness strength in its overall business with its ongoing integration, thereby creating new cross-selling opportunities.

The company’s preliminary projection of a robust improvement in revenues on the back of strength in its businesses lifts our confidence on the stock.

Price Performance

Shares of the company have lost 26.4% between July and Oct 2, 2022 compared with the industry’s 30.1% decline and the S&P 500’s 6.3% fall.

Zacks Investment Research
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Zacks Rank & Key Picks

Currently, QuidelOrtho carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .

AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMN Healthcare has lost 7.6% compared with the industry’s 11.4% decline between July and Oct 2, 2022.

ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.5% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.

ShockWave Medical has gained 40% against the industry’s 10.7% decline between July and Oct 2, 2022.

McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.

McKesson has gained 3.1% against the industry’s 8.2% decline between July and Oct 2, 2022.

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