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QuidelOrtho (QDEL)
NASDAQ:QDEL
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QuidelOrtho
(NASDAQ:QDEL)
Rating:50Neutral
Price Target:
$23.50
▼(-9.37% Downside)
Positive Factors
Cost Management
The company announced additional cost savings initiatives, which are expected to enhance financial performance.
Financial Performance
QuidelOrtho's EBITDA margins have improved significantly, showing a 450 basis point increase year-over-year.
Guidance
QuidelOrtho's full-year guidance for revenue and earnings was maintained, countering investor concerns about potential cuts due to market softness.
Negative Factors
Manufacturing Challenges
Plans to move some manufacturing to China as a mitigation effort are not an immediate solution and are likely several years away.
Revenue Expectations
There is a decrease in first-quarter revenue expectations primarily driven by a reduction in COVID and flu revenue.
Tariff Exposure
QuidelOrtho faces challenges due to tariff exposure, with a significant portion of revenue coming from China and being subject to U.S. tariffs.
QuidelOrtho (QDEL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.76B
Dividend YieldN/A
Average Volume (3M)1.45M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth-3.00%
EPS Growth76.48%
CountryUS
Employees6,600
SectorHealthcare
Sector Strength49
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.12
Shares Outstanding67,900,470
10 Day Avg. Volume1,616,542
30 Day Avg. Volume1,445,597
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.99
Price to Sales (P/S)1.06
P/FCF Ratio-26.38
Enterprise Value/Market Cap2.61
Enterprise Value/Revenue1.66
Enterprise Value/Gross Profit2.97
Enterprise Value/Ebitda28.65
Forecast
1Y Price Target
$38.64Price Target Upside49.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
QuidelOrtho Business Overview & Revenue Model
Company DescriptionQuidelOrtho Corporation (QDEL) is a leading provider of diagnostic solutions, primarily focused on infectious diseases, reproductive health, and acute care testing. The company operates in the healthcare sector, specializing in the development, manufacturing, and marketing of rapid diagnostic tests and related technologies. QuidelOrtho's core products include point-of-care testing devices, molecular diagnostics, and immunoassays, which are designed to provide rapid and accurate results for healthcare professionals and patients.
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: 9.50%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mixed picture with notable achievements in international growth, profitability improvements, and strategic acquisitions, while facing challenges in North American revenue and COVID-related declines. The company's cost-saving initiatives and improved margins are positive indicators, but the downward revision of COVID revenue guidance and the challenges in China suggest caution.Q2-2025 Updates
Positive Updates
Solid Q2 Revenue and Growth in Key Segments
Total revenue of $614 million grew 1% year-over-year, excluding COVID and Donor Screening. Labs and Immunohematology business units reported organic constant currency growth of 5% and 3%, respectively.
Strong International Performance
EMEA growth was up 3% in Q2 and 6% year-to-date. Other regions grew 10% in Q2, with 14% growth in Latin America and 6% growth in Japan and Asia Pacific.
Improved Profitability
Adjusted EBITDA margin improved by 330 basis points. Adjusted diluted EPS showed a meaningful improvement compared to the prior year period.
Significant Cost Savings and Efficiency
The company achieved $30 million to $50 million in incremental cost savings, with a focus on indirect procurement and staffing reductions.
LEX Diagnostics Acquisition and Molecular Strategy
The acquisition of LEX Diagnostics is expected to enhance molecular diagnostics capabilities with an innovative platform that can deliver results in minutes.
Negative Updates
North America Revenue Decline
North America revenue declined by 12% during the quarter due to seasonally low viral prevalence.
COVID Revenue Decrease
COVID revenue decreased by 52%, leading to a revised full-year COVID revenue guidance of $70 million to $100 million, down from the previous range of $110 million to $140 million.
Challenges in China
China faced challenges with 2% growth in Q2 due to tariff-related shipment holds, but shipments have since been restored. The market remains challenging due to volume-based procurement processes.
Company Guidance
During the QuidelOrtho Second Quarter 2025 Financial Results Conference Call, the company provided several key metrics and guidance. Total revenue for Q2 was $614 million, with organic constant currency growth of 5% in the Labs business and 3% in Immunohematology. The respiratory business saw a $2 million revenue decline, excluding COVID impacts. Regionally, North America revenue declined by 12%, while growth was observed in Latin America (14%), Japan (6%), and Asia Pacific (6%). China experienced 2% growth despite tariff-related challenges, with expectations for mid-single-digit growth for the remainder of 2025. Adjusted EBITDA margin improved by 330 basis points, and adjusted diluted EPS increased compared to the prior year. The company expects full-year 2025 total reported revenue between $2.6 billion and $2.81 billion, maintaining previous guidance for adjusted EBITDA of $575 million to $615 million, reflecting a 22% margin. Additionally, potential tariff headwinds are now estimated at $20-$25 million, down from an earlier range of $30-$40 million, with mitigation efforts expected to offset these impacts.QuidelOrtho Financial Statement Overview
Summary
QuidelOrtho faces profitability challenges due to recent losses, impacting income statement scores. However, improvements in debt management and cash flow stability provide some optimism for financial recovery. Strong gross profit margin and equity ratio indicate underlying strengths despite current difficulties.Income Statement
The revenue has shown a fluctuating trend with a recent decline in TTM compared to the previous year. Gross profit margin remains relatively strong at 55.94% TTM, but the company is currently experiencing negative net and EBIT margins due to substantial losses, impacting profitability.45
Neutral
Balance Sheet
The debt-to-equity ratio has improved significantly in TTM (0.19) compared to the previous year, indicating better leverage. However, the return on equity is negative due to net losses, while the equity ratio remains stable at 46.38%.55
Neutral
Cash Flow
The company has shown a positive shift in free cash flow in TTM, reflecting improved cash management. The operating cash flow to net income ratio is strong, but overall cash flow performance is affected by past negative free cash flows.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.76B | 2.78B | 3.00B | 3.27B | 1.70B | 1.66B |
| Gross Profit | 1.55B | 1.29B | 1.49B | 1.94B | 1.27B | 1.35B |
| EBITDA | 160.40M | -1.46B | 607.00M | 1.09B | 955.44M | 1.09B |
| Net Income | -333.70M | -2.05B | -10.10M | 548.70M | 704.20M | 810.29M |
Balance Sheet | ||||||
| Total Assets | 6.46B | 6.42B | 8.56B | 8.86B | 2.43B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 127.10M | 98.30M | 167.30M | 345.00M | 828.50M | 489.94M |
| Total Debt | 557.10M | 2.68B | 2.61B | 2.85B | 139.30M | 108.50M |
| Total Liabilities | 3.46B | 3.44B | 3.56B | 3.92B | 501.00M | 538.46M |
| Stockholders Equity | 3.00B | 2.98B | 5.01B | 4.93B | 1.93B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 30.40M | -112.10M | 70.90M | 744.40M | 513.14M | 564.84M |
| Operating Cash Flow | 149.30M | 83.00M | 280.20M | 885.30M | 805.87M | 629.76M |
| Investing Cash Flow | -185.90M | -149.90M | -187.60M | -1.64B | -319.53M | -63.32M |
| Financing Cash Flow | 84.90M | 48.80M | -265.80M | 252.00M | -173.18M | -130.28M |
QuidelOrtho Technical Analysis
Neutral
25.93
Price Trends
27.50
Negative
28.90
Negative
34.97
Negative
Market Momentum
-0.63
Negative
50.10
Neutral
78.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QDEL, the sentiment is Neutral. The current price of 25.93 is above the 20-day moving average (MA) of 25.01, below the 50-day MA of 27.50, and below the 200-day MA of 34.97, indicating a neutral trend. The MACD of -0.63 indicates Negative momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $41.69B | 29.95 | 25.86% | 0.77% | 9.84% | 37.48% | |
75 Outperform | $15.14B | 28.13 | 11.38% | ― | 1.28% | -17.73% | |
72 Outperform | $2.52B | 16.40 | 18.27% | ― | 0.91% | 45.81% | |
58 Neutral | $7.12B | ― | -0.68% | ― | 8.73% | -245.82% | |
51 Neutral | $8.25B | 116.65 | -20.54% | ― | -8.36% | -669.36% | |
51 Neutral | kr6.00B | 8.79 | -28.70% | 2.24% | 51.61% | 19.20% | |
50 Neutral | $1.76B | ― | -14.80% | ― | -3.00% | 76.48% |
* Healthcare Sector Average
Performance Comparison
QDEL
QuidelOrtho
25.93
-19.02
-42.31%
HAE
Haemonetics
53.74
-21.11
-28.20%
HOLX
Hologic
67.81
-13.54
-16.64%
MASI
Masimo
153.87
31.79
26.04%
RGEN
Repligen
124.34
-29.48
-19.17%
RMD
Resmed
284.89
55.58
24.24%
QuidelOrtho Corporate Events
Executive/Board ChangesShareholder Meetings
QuidelOrtho Stockholders Approve Equity Plan Changes
Neutral
May 27, 2025
At the Annual Meeting, QuidelOrtho‘s stockholders approved significant changes to the company’s equity incentive plan, increasing the number of shares authorized for issuance by 6,200,000 and extending the plan’s term to 2035. Additionally, the stockholders elected eleven directors to the board, approved executive compensation, and ratified KPMG LLP as the independent auditor for the 2025 fiscal year.
The most recent analyst rating on (QDEL) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on QuidelOrtho stock, see the QDEL Stock Forecast page.
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.