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Quidelortho Corporation (QDEL)
:QDEL
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QuidelOrtho (QDEL) AI Stock Analysis

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QDEL

QuidelOrtho

(NASDAQ:QDEL)

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Neutral 52 (OpenAI - 4o)
Rating:52Neutral
Price Target:
$29.00
▲(3.09% Upside)
QuidelOrtho's stock score is primarily impacted by its financial performance, which shows significant challenges with declining revenues and profitability. Technical analysis indicates potential stability, but valuation metrics are unattractive due to negative earnings. The earnings call highlighted growth in specific segments, but overall challenges remain.
Positive Factors
Improved Profitability Metrics
The improvement in EBITDA margin indicates enhanced operational efficiency, which can lead to better cash flow and financial health, supporting long-term growth.
Strong International Growth
Strong international growth diversifies revenue streams and reduces reliance on any single market, enhancing resilience against regional economic fluctuations.
Successful ERP System Conversion
The successful ERP conversion can streamline operations and reduce future integration costs, improving efficiency and supporting scalability.
Negative Factors
Decline in North America Revenue
A decline in North America revenue suggests challenges in a key market, which could impact overall revenue growth and market position if not addressed.
Decreased COVID Revenue
The significant drop in COVID-related revenue reflects reduced demand, impacting short-term revenue and necessitating a shift in focus to other growth areas.
Challenges in Donor Screening Business
The decline in the Donor Screening segment indicates strategic challenges, requiring reallocation of resources to more promising areas to maintain growth.

QuidelOrtho (QDEL) vs. SPDR S&P 500 ETF (SPY)

QuidelOrtho Business Overview & Revenue Model

Company DescriptionQuidelOrtho Corporation focuses on the development and manufacture of diagnostic testing technologies across the continuum of healthcare testing needs. The company operates through Labs, Transfusion Medicine, Point-of-Care, and Molecular Diagnostics business units. The Labs business unit provides clinical chemistry laboratory instruments and tests that measure target chemicals in bodily fluids for the evaluation of health and the clinical management of patients; immunoassay laboratory instruments and tests, which measure proteins as they act as antigens in the spread of disease, antibodies in the immune response spurred by disease, or markers of proper organ function and health; testing products to detect and monitor disease progression across a spectrum of therapeutic areas; and specialized diagnostic solutions. The Transfusion Medicine business unit offers immunohematology instruments and tests used for blood typing to ensure patient-donor compatibility in blood transfusions; and donor screening instruments and tests used for blood and plasma screening for infectious diseases. The Point-of-Care business unit provides tests to provide rapid results across a continuum of point-of-care settings. The Molecular Diagnostics business unit offers polymerase chain reaction thermocyclers; and analyzers and amplification systems. The company sells its products directly to end users through a direct sales force; and through a network of distributors for professional use in physician offices, hospitals, clinical laboratories, reference laboratories, urgent care clinics, universities, retail clinics, pharmacies, wellness screening centers, blood banks, and donor centers, as well as for individual, non-professional, and over-the-counter use. It operates in North America, Europe, the Middle East, Africa, China, and internationally. The company was founded in 1979 and is headquartered in San Diego, California.
How the Company Makes MoneyQuidelOrtho generates revenue through the sale of its diagnostic products and services. The company primarily earns money from its extensive portfolio of rapid diagnostic tests, which are used in various clinical settings, including hospitals, laboratories, and physician offices. Key revenue streams include sales of immunoassay and molecular diagnostic products, as well as related consumables and accessories. Additionally, QuidelOrtho benefits from strategic partnerships with healthcare providers, distributors, and research institutions that enhance its market reach and product offerings. The company's ability to innovate and introduce new products, especially in response to emerging health needs, further contributes to its earnings.

QuidelOrtho Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a balanced outlook for QuidelOrtho. While the company demonstrated strong growth in certain segments and regions, and improved profitability metrics, it also faced challenges such as a decline in North America revenue and decreased COVID-related revenue. The solid performance outside North America and improved profitability metrics are counterbalanced by the revenue declines in North America and COVID segments.
Q2-2025 Updates
Positive Updates
Consistent Growth in Labs and Immunohematology
The Labs business delivered a 5% organic growth, while the Immunohematology business achieved a 3% growth, showing strong performance in key segments.
Strong Performance Outside North America
The company's OUS (Outside the United States) performance was robust with 14% growth in Latin America, 6% growth in Japan and Asia Pacific, and 3% growth in Europe, Middle East, and Africa (EMEA).
Improved Profitability Metrics
Adjusted EBITDA margin improved by 330 basis points year-over-year, and adjusted diluted EPS grew by 271% compared to the previous year.
Potential in China Market
Despite global challenges, China revenue grew by 2% in Q2, with low penetration in the market presenting a significant growth opportunity.
Successful ERP System Conversion
The ERP system conversion related to the business combination was completed successfully, promising lower integration costs in future.
Negative Updates
Decline in North America Revenue
North America revenue declined by 12% during the quarter, attributed to seasonally low viral prevalence.
Decreased COVID Revenue
COVID revenue significantly decreased by 52%, leading to a revised full-year COVID revenue expectation of $70 million to $100 million, down from $110 million to $140 million.
Challenges in Donor Screening Business
Revenue from the Donor Screening business decreased by 61% as the company continues to wind down this segment.
Company Guidance
During the QuidelOrtho Second Quarter 2025 Financial Results Conference Call, the company provided several key metrics and guidance for the remainder of the year. Total revenue for Q2 was $614 million, reflecting a 1% growth, excluding COVID and Donor Screening businesses. The Labs and Immunohematology business units reported organic constant currency growth of 5% and 3%, respectively. Adjusted EBITDA margin improved by 330 basis points, and adjusted diluted EPS showed significant improvement compared to the previous year. For the full year 2025, QuidelOrtho maintained its financial guidance, expecting total revenue between $2.6 billion and $2.81 billion and adjusted EBITDA between $575 million and $615 million. The company foresees a lower COVID revenue range of $70 million to $100 million, down from previous estimates due to less severe current COVID strains. Additionally, tariff headwinds are now estimated to be $20 million to $25 million, down from prior estimates. The company also highlighted its molecular strategy, including the proposed acquisition of LEX Diagnostics, which could present growth opportunities if the Velo molecular platform receives FDA clearance.

QuidelOrtho Financial Statement Overview

Summary
QuidelOrtho faces significant financial challenges, with declining revenues, negative profitability, and fluctuating cash flows. While the balance sheet shows balanced leverage, the negative return on equity and operational inefficiencies are concerning. The company needs to address its revenue decline and improve operational efficiency to stabilize its financial position.
Income Statement
45
Neutral
QuidelOrtho's income statement shows significant challenges, with declining revenue and negative profit margins. The TTM data reveals a substantial revenue drop of 76.7% and a negative net profit margin of -17.0%. Historical data indicates a consistent decline in revenue growth and profitability, with EBIT and EBITDA margins turning negative in recent periods. These trends highlight operational inefficiencies and market challenges.
Balance Sheet
55
Neutral
The balance sheet reflects a stable debt-to-equity ratio of 1.0 in the TTM period, indicating balanced leverage. However, the return on equity is negative, suggesting inefficiencies in generating returns from equity. The equity ratio remains reasonable, but the declining equity and increasing debt levels pose potential risks to financial stability.
Cash Flow
60
Neutral
Cash flow analysis shows improvement in free cash flow growth in the TTM period, with a significant increase of 305.6%. The operating cash flow to net income ratio is positive, indicating some operational cash generation despite net losses. However, historical fluctuations in free cash flow and negative free cash flow in previous periods highlight volatility in cash management.
BreakdownTTMDec 2024Dec 2023Dec 2021Dec 2020Dec 2019
Income Statement
Total Revenue2.74B2.78B3.00B1.70B1.66B534.89M
Gross Profit1.25B1.29B1.49B1.28B1.35B320.81M
EBITDA222.70M-1.46B607.00M955.44M1.09B143.76M
Net Income-466.40M-2.05B-10.10M704.20M810.29M72.92M
Balance Sheet
Total Assets6.38B6.42B8.56B2.43B1.87B910.87M
Cash, Cash Equivalents and Short-Term Investments151.70M98.30M167.30M828.50M489.94M52.77M
Total Debt2.79B2.68B2.61B139.30M108.50M112.30M
Total Liabilities3.59B3.44B3.56B501.00M538.46M351.05M
Stockholders Equity2.79B2.98B5.01B1.93B1.33B559.82M
Cash Flow
Free Cash Flow123.30M-112.10M70.90M513.14M564.84M107.26M
Operating Cash Flow200.40M83.00M280.20M805.87M629.76M134.49M
Investing Cash Flow-183.60M-149.90M-187.60M-319.53M-63.32M-27.23M
Financing Cash Flow25.70M48.80M-265.80M-173.18M-130.28M-98.28M

QuidelOrtho Technical Analysis

Technical Analysis Sentiment
Positive
Last Price28.13
Price Trends
50DMA
27.81
Positive
100DMA
27.98
Positive
200DMA
32.22
Negative
Market Momentum
MACD
-0.18
Positive
RSI
50.29
Neutral
STOCH
52.42
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QDEL, the sentiment is Positive. The current price of 28.13 is below the 20-day moving average (MA) of 28.24, above the 50-day MA of 27.81, and below the 200-day MA of 32.22, indicating a neutral trend. The MACD of -0.18 indicates Positive momentum. The RSI at 50.29 is Neutral, neither overbought nor oversold. The STOCH value of 52.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QDEL.

QuidelOrtho Risk Analysis

QuidelOrtho disclosed 50 risk factors in its most recent earnings report. QuidelOrtho reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

QuidelOrtho Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$15.54B28.9811.38%1.28%-17.73%
68
Neutral
$2.42B15.3418.27%0.91%45.81%
58
Neutral
$7.97B116.65-20.54%-8.36%-669.36%
54
Neutral
$11.86B136.07-3.30%2.94%-27.41%67.01%
52
Neutral
$1.91B-14.80%-3.00%76.48%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
45
Neutral
$1.24B55.81-25.55%-32.59%-667.81%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QDEL
QuidelOrtho
28.13
-11.71
-29.39%
BAX
Baxter International
23.09
-12.67
-35.43%
HAE
Haemonetics
50.26
-24.61
-32.87%
HOLX
Hologic
69.85
-11.30
-13.92%
MASI
Masimo
146.78
2.73
1.90%
STAA
Staar Surgical
25.03
-5.66
-18.44%

QuidelOrtho Corporate Events

Private Placements and Financing
QuidelOrtho Completes Major Debt Refinancing Transaction
Positive
Aug 21, 2025

On August 21, 2025, QuidelOrtho Corporation completed a significant debt refinancing transaction, entering into a Credit Agreement with Bank of America and other lenders. This agreement includes a $1.15 billion senior secured term loan A, a $100 million delayed draw term loan A, a $1.45 billion senior secured term loan B, and a $700 million revolving credit facility. The refinancing allows QuidelOrtho to extend its debt maturities, reduce required amortization payments, and improve financial flexibility, supporting future growth and strengthening its capital structure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 17, 2025