We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QuidelOrtho Stock Gains Following Q1 Earnings Beat, Margins Expand
Read MoreHide Full Article
QuidelOrthoCorporation (QDEL - Free Report) delivered adjusted earnings per share (EPS) of 74 cents in first-quarter 2025, up 68.2% year over year. The figure topped the Zacks Consensus Estimate by 27.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The adjustments include expenses related to the amortization of intangibles, and acquisition and integration costs, among others.
GAAP loss per share for the quarter was 19 cents compared with the year-earlier loss of $25.5 per share.
QDEL’s Revenues in Detail
QuidelOrtho registered revenues of $692.8 million in the first quarter of 2025, which decreased 2.6% year over year on a reported basis and 1.1% at constant exchange rate (CER). However, the figure surpassed the Zacks Consensus Estimate by 0.3%.
In the first quarter, Respiratory revenues were $119.8 million (down 12.8% on a reported basis and 12.6% at CER), while Non-Respiratory revenues were $573 million (down 0.1% on a reported basis but up 1.7% at CER).
Shares of this company gained nearly 8.3% in today’s pre-market trading.
QuidelOrtho’s Business Units in Detail
QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening.
In the first quarter, Labs revenues were $373.1 million, up 4.5% on a reported basis and 6.7% at CER.
Immunohematology revenues were $128.5 million in the first quarter, up 1.2% and 3.7% on a reported basis and at CER, respectively.
Donor Screening revenues were $12.8 million in the first quarter, down 61.6% and 61.5% on a reported basis and at CER, respectively.
Point of Care revenues amounted to $170.8 million in the first quarter, reflecting a decline of 8.5% on a reported basis and 8.4% at CER.
Molecular Diagnostics revenues totaled $7.6 million in the first quarter, up 5.6% and 7.2% on a reported basis and at CER, respectively.
QDEL’s Geographical Distribution
Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China and Other regions (which include Latin America, Japan and other Asia-Pacific markets).
Revenues from North Americaamounted to $406.7million, reflecting a decline of 6.3% and 6.5% on a reported basis and at CER, respectively.
EMEA revenues amounted to $88.9million, reflecting an increase of 4.8% on a reported basis and 8.6% at CER.
Revenues from China amounted to $75million, reflecting a decline of 1.4% on a reported basis and 0.1% at CER.
Revenues from Other regions amounted to $122.2million, reflecting an uptick of 5.2% on a reported basis and 12.3% at CER.
QuidelOrtho Corporation Price, Consensus and EPS Surprise
In the quarter under review, QuidelOrtho’s adjusted gross profit improved 2.7% year over year to $346.9 million. The adjusted gross margin expanded 260 basis points (bps) to 50.1%.
Adjusted selling, marketing and administrative expenses fell 6.4% year over year to $180.2 million. Adjusted research and development expenses declined 9.8% year over year to $52.7 million. Adjusted operating expenses of $232.9 million decreased 7.1% year over year.
Adjusted operating profit totaled $107.6 million, reflecting a 36% improvement from the prior-year quarter’s level. Adjusted operating margin in the first quarter expanded 440 bps to 15.5%.
QDEL’s Financial Position
QuidelOrtho exited the first quarter of 2025 with cash and cash equivalents of $127.1 million compared with $98.3 million at the end of 2024. Total debt (including short-term debt) at the end of first-quarter 2025 was $2.49 billion compared with $2.48 billion at 2024-end.
Net cash provided by operating activities at the end of the first quarter was $65.6 million against net cash used in operating activities of $0.7 million a year ago.
QuidelOrtho’s Guidance
QuidelOrtho has reiterated its financial outlook for 2025.
Total revenues are expected to lie in the range of $2.60 billion-$2.81 billion billion. The Zacks Consensus Estimate is pegged at $2.70 billion.
For the full year, QuidelOrtho projects stable growth across most business lines, with strength in its Labs and Immunohematology businesses. In China, despite early second-quarter softness caused by delayed shipments related to evolving tariffs, full-year growth is still expected to be in the mid- to high-single digits. This optimism is supported by strong performance in clinical chemistry and immunohematology, with limited impact from the country’s volume-based procurement policies.
Within the Respiratory revenues for the full year, COVID-19 revenues are expected to be $110-$140 million for 2025, assuming a summer spike consistent with trends observed over the past two years.
Adjusted EPS is expected to lie between $2.07 and $2.57. The Zacks Consensus Estimate is pegged at $2.31.
Our Take
QuidelOrtho ended the first quarter of 2025 with better-than-expected results. The company registered robust revenues from its Labs, Immunohematology and Molecular Diagnostics business units and EMEA and Other regions, which were encouraging. The expansion of margins bodes well. QDEL witnessed robust bottom-line growth as well.
Per management, growth of QDEL’s underlying business with its recurring revenue business model continued to perform well during the quarter. The company also made progress on implementing its cost-savings initiatives and is targeting additional cost savings across the business. Management expects that these initiatives will enable QuidelOrtho to operate more effectively and deliver incremental margin improvement in 2025 and beyond. This looks promising for the stock.
QuidelOrtho expects a gross tariff impact of $30–$40 million in 2025, primarily driven by immunoassay products manufactured in the UK and shipped to the United States, along with select shipments to China and surcharges on globally sourced subcomponents. However, the company has implemented a comprehensive mitigation strategy to fully offset these impacts, ensuring no change to its 2025 financial guidance. These actions include changing the origin of raw materials, repositioning inventory, shifting to alternate suppliers, implementing selective pricing adjustments, and driving additional cost reductions. Management expressed confidence in these mitigation efforts, stating they are already in effect and aligned with the expected timing of tariff-related expenses.
However, dismal top-line results were disappointing. Lower Respiratory and Non-Respiratory revenues during the quarter were also not promising. The decline in its Donor Screening and Point of Care units and geographically in North America and China was discouraging.
QDEL’s Zacks Rank and Key Picks
QDEL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry that have announced quarterly results are CVS Health Corporation (CVS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
QuidelOrtho Stock Gains Following Q1 Earnings Beat, Margins Expand
QuidelOrtho Corporation (QDEL - Free Report) delivered adjusted earnings per share (EPS) of 74 cents in first-quarter 2025, up 68.2% year over year. The figure topped the Zacks Consensus Estimate by 27.6%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The adjustments include expenses related to the amortization of intangibles, and acquisition and integration costs, among others.
GAAP loss per share for the quarter was 19 cents compared with the year-earlier loss of $25.5 per share.
QDEL’s Revenues in Detail
QuidelOrtho registered revenues of $692.8 million in the first quarter of 2025, which decreased 2.6% year over year on a reported basis and 1.1% at constant exchange rate (CER). However, the figure surpassed the Zacks Consensus Estimate by 0.3%.
In the first quarter, Respiratory revenues were $119.8 million (down 12.8% on a reported basis and 12.6% at CER), while Non-Respiratory revenues were $573 million (down 0.1% on a reported basis but up 1.7% at CER).
Shares of this company gained nearly 8.3% in today’s pre-market trading.
QuidelOrtho’s Business Units in Detail
QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening.
In the first quarter, Labs revenues were $373.1 million, up 4.5% on a reported basis and 6.7% at CER.
Immunohematology revenues were $128.5 million in the first quarter, up 1.2% and 3.7% on a reported basis and at CER, respectively.
Donor Screening revenues were $12.8 million in the first quarter, down 61.6% and 61.5% on a reported basis and at CER, respectively.
Point of Care revenues amounted to $170.8 million in the first quarter, reflecting a decline of 8.5% on a reported basis and 8.4% at CER.
Molecular Diagnostics revenues totaled $7.6 million in the first quarter, up 5.6% and 7.2% on a reported basis and at CER, respectively.
QDEL’s Geographical Distribution
Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China and Other regions (which include Latin America, Japan and other Asia-Pacific markets).
Revenues from North Americaamounted to $406.7million, reflecting a decline of 6.3% and 6.5% on a reported basis and at CER, respectively.
EMEA revenues amounted to $88.9million, reflecting an increase of 4.8% on a reported basis and 8.6% at CER.
Revenues from China amounted to $75million, reflecting a decline of 1.4% on a reported basis and 0.1% at CER.
Revenues from Other regions amounted to $122.2million, reflecting an uptick of 5.2% on a reported basis and 12.3% at CER.
QuidelOrtho Corporation Price, Consensus and EPS Surprise
QuidelOrtho Corporation price-consensus-eps-surprise-chart | QuidelOrtho Corporation Quote
QuidelOrtho’s Margin Trend
In the quarter under review, QuidelOrtho’s adjusted gross profit improved 2.7% year over year to $346.9 million. The adjusted gross margin expanded 260 basis points (bps) to 50.1%.
Adjusted selling, marketing and administrative expenses fell 6.4% year over year to $180.2 million. Adjusted research and development expenses declined 9.8% year over year to $52.7 million. Adjusted operating expenses of $232.9 million decreased 7.1% year over year.
Adjusted operating profit totaled $107.6 million, reflecting a 36% improvement from the prior-year quarter’s level. Adjusted operating margin in the first quarter expanded 440 bps to 15.5%.
QDEL’s Financial Position
QuidelOrtho exited the first quarter of 2025 with cash and cash equivalents of $127.1 million compared with $98.3 million at the end of 2024. Total debt (including short-term debt) at the end of first-quarter 2025 was $2.49 billion compared with $2.48 billion at 2024-end.
Net cash provided by operating activities at the end of the first quarter was $65.6 million against net cash used in operating activities of $0.7 million a year ago.
QuidelOrtho’s Guidance
QuidelOrtho has reiterated its financial outlook for 2025.
Total revenues are expected to lie in the range of $2.60 billion-$2.81 billion billion. The Zacks Consensus Estimate is pegged at $2.70 billion.
For the full year, QuidelOrtho projects stable growth across most business lines, with strength in its Labs and Immunohematology businesses. In China, despite early second-quarter softness caused by delayed shipments related to evolving tariffs, full-year growth is still expected to be in the mid- to high-single digits. This optimism is supported by strong performance in clinical chemistry and immunohematology, with limited impact from the country’s volume-based procurement policies.
Within the Respiratory revenues for the full year, COVID-19 revenues are expected to be $110-$140 million for 2025, assuming a summer spike consistent with trends observed over the past two years.
Adjusted EPS is expected to lie between $2.07 and $2.57. The Zacks Consensus Estimate is pegged at $2.31.
Our Take
QuidelOrtho ended the first quarter of 2025 with better-than-expected results. The company registered robust revenues from its Labs, Immunohematology and Molecular Diagnostics business units and EMEA and Other regions, which were encouraging. The expansion of margins bodes well. QDEL witnessed robust bottom-line growth as well.
Per management, growth of QDEL’s underlying business with its recurring revenue business model continued to perform well during the quarter. The company also made progress on implementing its cost-savings initiatives and is targeting additional cost savings across the business. Management expects that these initiatives will enable QuidelOrtho to operate more effectively and deliver incremental margin improvement in 2025 and beyond. This looks promising for the stock.
QuidelOrtho expects a gross tariff impact of $30–$40 million in 2025, primarily driven by immunoassay products manufactured in the UK and shipped to the United States, along with select shipments to China and surcharges on globally sourced subcomponents. However, the company has implemented a comprehensive mitigation strategy to fully offset these impacts, ensuring no change to its 2025 financial guidance. These actions include changing the origin of raw materials, repositioning inventory, shifting to alternate suppliers, implementing selective pricing adjustments, and driving additional cost reductions. Management expressed confidence in these mitigation efforts, stating they are already in effect and aligned with the expected timing of tariff-related expenses.
However, dismal top-line results were disappointing. Lower Respiratory and Non-Respiratory revenues during the quarter were also not promising. The decline in its Donor Screening and Point of Care units and geographically in North America and China was discouraging.
QDEL’s Zacks Rank and Key Picks
QDEL currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the industry that have announced quarterly results are CVS Health Corporation (CVS - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Boston Scientific Corporation (BSX - Free Report) .
CVS Health, carrying a Zacks Rank of 2 (Buy), reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. Revenues of $94.59 billion outpaced the consensus mark by 1.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CVS Health has a long-term estimated growth rate of 11.4%. CVS’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.1%.
Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank #1.
Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Boston Scientific reported first-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 11.9%. Revenues of $4.66 billion surpassed the Zacks Consensus Estimate by 2.3%. It currently carries a Zacks Rank #2.
Boston Scientific has a long-term estimated growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.