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QuidelOrtho Corporation (QDEL - Free Report) recently announced preliminary revenues for the first quarter of 2023. The robust preliminary results drove up the shares of the company by 5% till the last trading session.
The company is scheduled to release first-quarter results on May 3, after the closing bell.
Per the preliminary report, first-quarter 2023 total revenues are estimated to be $840 million-$850 million on a reported basis. This compares to our projection of first-quarter revenues of $753.5 million, representing a decline of 24.8%.
The company’s respiratory product revenue is expected to be in the range of $262 million to $267 million, including COVID-19 product revenue of $212 million to $217 million. Non-respiratory product revenue is expected to be in the range of $578 million to $583 million, representing 5% growth on a supplemental combined basis and 7% growth on a constant currency basis at the midpoint.
Per management, the uptick in the first-quarter revenues was primarily driven by QuidelOrtho’s Labs business unit, including an approximate $21 million settlement related to one of its collaboration agreements.
Management is also upbeat about its improving supply chain and is currently focused on its key growth drivers. This raises our optimism about the stock.
A Brief Q1 Analysis
Per management, QuidelOrtho’s strong start to its first quarter has been supported by delivering more instruments, driving strong results in its Labs business and better-than-expected results in the Point-Of-Care (POC) business. Management also added that the company had delivered solid non-respiratory revenue growth across all major geographic regions, with notable strength in China. This demonstrated the power of its newly created scale, a wide range of offerings across the diagnostics continuum and the durability of its business model.
Over the past few months, QuidelOrtho has also been witnessing strength in its POC and Transfusion Medicine business units, which also looks promising for the stock. QuidelOrtho is also expected to witness strength in its overall business with its ongoing integration, thereby creating new cross-selling opportunities.
In March, QuidelOrtho announced that it had been granted a De Novo request from the FDA, allowing the company to market its new Sofia 2 SARS Antigen+ FIA (fluorescent immunoassay). This looks promising for the stock.
The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.
Price Performance
Shares of the company have gained 3.9% between Jan 2 and Apr 2, 2023 compared with the industry’s 0.5% rise and the S&P 500’s 7.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, QuidelOrtho carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 7.9% compared with the industry’s 2.7% rise between Jan 2 and Apr 2, 2023.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has gained 2.1% compared with the industry’s 6% rise between Jan 2 and Apr 2, 2023.
Masimo, flaunting a Zacks Rank #1 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 24.7% compared with the industry’s 2.7% rise between Jan 2 and Apr 2, 2023.
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QuidelOrtho (QDEL) Reports Solid Preliminary Q1 Revenues
QuidelOrtho Corporation (QDEL - Free Report) recently announced preliminary revenues for the first quarter of 2023. The robust preliminary results drove up the shares of the company by 5% till the last trading session.
The company is scheduled to release first-quarter results on May 3, after the closing bell.
Per the preliminary report, first-quarter 2023 total revenues are estimated to be $840 million-$850 million on a reported basis. This compares to our projection of first-quarter revenues of $753.5 million, representing a decline of 24.8%.
The company’s respiratory product revenue is expected to be in the range of $262 million to $267 million, including COVID-19 product revenue of $212 million to $217 million. Non-respiratory product revenue is expected to be in the range of $578 million to $583 million, representing 5% growth on a supplemental combined basis and 7% growth on a constant currency basis at the midpoint.
Per management, the uptick in the first-quarter revenues was primarily driven by QuidelOrtho’s Labs business unit, including an approximate $21 million settlement related to one of its collaboration agreements.
Management is also upbeat about its improving supply chain and is currently focused on its key growth drivers. This raises our optimism about the stock.
A Brief Q1 Analysis
Per management, QuidelOrtho’s strong start to its first quarter has been supported by delivering more instruments, driving strong results in its Labs business and better-than-expected results in the Point-Of-Care (POC) business. Management also added that the company had delivered solid non-respiratory revenue growth across all major geographic regions, with notable strength in China. This demonstrated the power of its newly created scale, a wide range of offerings across the diagnostics continuum and the durability of its business model.
Over the past few months, QuidelOrtho has also been witnessing strength in its POC and Transfusion Medicine business units, which also looks promising for the stock. QuidelOrtho is also expected to witness strength in its overall business with its ongoing integration, thereby creating new cross-selling opportunities.
In March, QuidelOrtho announced that it had been granted a De Novo request from the FDA, allowing the company to market its new Sofia 2 SARS Antigen+ FIA (fluorescent immunoassay). This looks promising for the stock.
The company’s preliminary projection of robust improvement in revenues on the back of strength in its businesses lifts our confidence about the stock.
Price Performance
Shares of the company have gained 3.9% between Jan 2 and Apr 2, 2023 compared with the industry’s 0.5% rise and the S&P 500’s 7.4% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, QuidelOrtho carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 7.9% compared with the industry’s 2.7% rise between Jan 2 and Apr 2, 2023.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has gained 2.1% compared with the industry’s 6% rise between Jan 2 and Apr 2, 2023.
Masimo, flaunting a Zacks Rank #1 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 24.7% compared with the industry’s 2.7% rise between Jan 2 and Apr 2, 2023.