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QuidelOrtho (QDEL)
NASDAQ:QDEL
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QuidelOrtho
(NASDAQ:QDEL)
Rating:52Neutral
Price Target:
$30.00
▲( 1.42% Upside)
Positive Factors
Cost Management
The company announced additional cost savings initiatives, which are expected to enhance financial performance.
Earnings
QuidelOrtho's first-quarter update was better than feared, with total revenue and AEBITDA ahead of consensus.
Valuation
The company's valuation has become more favorable, with EV/EBITDA now below its 3-year average.
Negative Factors
Profitability Uncertainty
Estimating the earnings impact from tariffs is extremely challenging, creating uncertainty around profitability estimates.
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
$2.20B
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-3.18%
EPS Growth81.18%
CountryUS
Employees6,600
SectorHealthcare
Sector Strength44
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.74
Shares Outstanding67,625,870
10 Day Avg. Volume2,501,446
30 Day Avg. Volume1,915,642
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)0.78
Price to Sales (P/S)0.00
P/FCF Ratio-20.99
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.00Price Target Upside48.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
QuidelOrtho Business Overview & Revenue Model
Company DescriptionQuidelOrtho Corporation (QDEL) is a prominent player in the healthcare sector, specializing in the development, manufacturing, and distribution of diagnostic testing solutions. The company operates in the in vitro diagnostics (IVD) industry, providing innovative diagnostic products and services that aid in disease detection and management. QuidelOrtho's core offerings include immunoassays, molecular diagnostic tests, point-of-care testing solutions, and clinical chemistry and blood bank reagents, serving a diverse range of customers worldwide, including hospitals, laboratories, and physician offices.
How the Company Makes MoneyQuidelOrtho generates revenue primarily through the sale of its diagnostic testing products and solutions. The company's key revenue streams include sales from immunoassay and molecular diagnostic products, which are used in various healthcare settings for rapid and accurate disease detection. Additionally, QuidelOrtho earns income from point-of-care testing solutions, which provide immediate diagnostic results at the site of patient care, enhancing the decision-making process. The company also benefits from its clinical chemistry and blood bank reagents, essential for laboratory testing and blood banking operations. Strategic partnerships, such as collaborations with healthcare providers and research institutions, further support its revenue growth by expanding its market reach and product offerings. Factors contributing to QuidelOrtho's earnings include a focus on innovation, meeting regulatory standards, and adapting to the evolving needs of the healthcare industry.
QuidelOrtho Financial Statement Overview
Summary
QuidelOrtho's financial performance is mixed. The income statement shows significant losses and declining revenue, impacting profitability. The balance sheet is stable with a moderate debt-to-equity ratio, but negative return on equity reflects inefficiency. Cash flow remains positive, though growth is weak.Income Statement
QuidelOrtho's income statement reveals significant volatility. The gross profit margin is high, indicating strong production efficiency, but the net profit margin is deeply negative for the recent year, reflecting substantial losses. Revenue has declined from previous years, contributing to a negative revenue growth rate. EBIT and EBITDA margins have also turned negative, showing operational challenges.40
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting a balanced capital structure. However, the return on equity is negative due to recent losses, indicating inefficiency in generating returns on shareholder investments. The equity ratio is stable, reflecting a solid base of equity financing.55
Neutral
Cash Flow
The cash flow statement indicates challenges with free cash flow growth, which has been inconsistent. The operating cash flow to net income ratio has diminished due to negative net income, but free cash flow remains positive, showing some resilience in cash generation despite operational losses.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.78B | 3.00B | 3.27B | 1.70B | 1.66B | Gross Profit |
| 1.29B | 1.49B | 1.94B | 1.27B | 1.35B | EBIT |
| -1.96B | 139.10M | 843.70M | 906.07M | 1.06B | EBITDA |
| -1.96B | 607.00M | 1.09B | 955.44M | 1.09B | Net Income Common Stockholders |
| -2.03B | -10.10M | 548.70M | 704.20M | 810.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 98.30M | 167.30M | 345.00M | 802.75M | 489.94M | Total Assets |
| 6.42B | 8.56B | 8.86B | 2.43B | 1.87B | Total Debt |
| 509.00M | 2.61B | 2.82B | 138.59M | 108.50M | Net Debt |
| 410.70M | 2.50B | 2.53B | -664.16M | -381.44M | Total Liabilities |
| 3.44B | 3.56B | 3.92B | 501.01M | 538.46M | Stockholders Equity |
| 2.98B | 5.01B | 4.93B | 1.93B | 1.33B |
| Cash Flow | Free Cash Flow | |||
| 83.00M | 70.90M | 744.40M | 513.14M | 564.84M | Operating Cash Flow |
| 83.00M | 280.20M | 885.30M | 805.87M | 629.76M | Investing Cash Flow |
| -149.90M | -187.60M | -1.64B | -319.53M | -63.32M | Financing Cash Flow |
| 48.80M | -265.80M | 252.00M | -173.18M | -130.28M |
QuidelOrtho Technical Analysis
Negative
29.58
Price Trends
31.23
Negative
36.88
Negative
39.40
Negative
Market Momentum
0.65
Negative
45.21
Neutral
29.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QDEL, the sentiment is Negative. The current price of 29.58 is below the 20-day moving average (MA) of 30.90, below the 50-day MA of 31.23, and below the 200-day MA of 39.40, indicating a bearish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 45.21 is Neutral, neither overbought nor oversold. The STOCH value of 29.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 2 New Risks
1.
We identified material weaknesses in our internal control over financial reporting which, if not remediated appropriately or timely, could affect our ability to record, process and report financial information accurately, impair our ability to prepare financial statements, negatively affect investor confidence and cause reputational harm. Q4, 2024
2.
We have been incorporating AI into our internal operations and may incorporate AI into our products and services. Implementation of AI and machine learning technologies may result in legal and regulatory risks, reputational harm or have other adverse consequences to our business. Q4, 2024
QuidelOrtho Peers Comparison
Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $36.38B | 27.86 | 25.81% | 0.83% | 9.54% | 37.23% | |
69 Neutral | $3.46B | 20.18 | 18.83% | ― | 8.14% | 2.55% | |
66 Neutral | $12.58B | 23.15 | 11.77% | ― | 1.66% | 21.95% | |
58 Neutral | $8.47B | 116.65 | -23.93% | ― | -0.12% | -713.82% | |
56 Neutral | $7.17B | ― | -1.16% | ― | 4.88% | -196.93% | |
53 Neutral | $5.24B | 3.07 | -43.58% | 2.80% | 16.87% | -0.11% | |
52 Neutral | $2.20B | ― | -10.59% | ― | -3.18% | 81.18% |
* Healthcare Sector Average
Performance Comparison
QDEL
QuidelOrtho
29.58
-12.27
-29.32%
HAE
Haemonetics
66.92
-21.72
-24.50%
HOLX
Hologic
54.82
-19.17
-25.91%
MASI
Masimo
149.39
24.64
19.75%
RGEN
Repligen
120.21
-38.57
-24.29%
RMD
Resmed
245.78
36.09
17.21%
QuidelOrtho Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 14.43%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted solid revenue growth excluding COVID impacts, improved profitability metrics, and effective cost-saving measures. However, challenges such as declining total revenue, COVID-related declines, and tariff impacts were noted. Despite these challenges, the company is confident in its mitigation strategies and maintains its financial guidance.Q1-2025 Updates
Positive Updates
Revenue Growth Excluding COVID and Donor Screening
Achieved mid-single-digit revenue growth of 6% in Q1 2025, driven by strong performance in the labs business, immunohematology, and a robust flu season.
Improved Adjusted EBITDA Margin
Saw a 450 basis point year-over-year improvement in adjusted EBITDA margin, reflecting cost-saving initiatives.
Significant Increase in Adjusted Diluted EPS
Adjusted diluted earnings per share increased by 68% compared to the prior year period.
Lab Business and Geographical Growth
The labs business, comprising 54% of total revenue, grew by 7%. The 'Other' region, including Japan, Asia-Pac, and Latin America, experienced 12% growth.
Cost Savings Initiatives
On track to realize $100 million in annualized cost savings, with $50 million expected in the first half of 2025.
Negative Updates
Decline in Total Reported Revenue
Total reported revenue for Q1 2025 was $693 million, down from $711 million in the prior year period, primarily due to lower COVID and donor screening revenue.
COVID Revenue Decline
COVID revenue was $23 million, reflecting a 53% year-over-year decline.
Tariff and Macroeconomic Challenges
Potential tariff headwinds estimated at $30 million to $40 million for 2025, necessitating mitigation plans.
Softness in China Revenue
China revenue was flat compared to the prior year period, impacted by timing of orders and decreased reimbursement rates for certain cardiac markers.
Company Guidance
During the QuidelOrtho Q1 2025 earnings call, the company provided specific financial guidance and metrics reflecting their performance and strategic outlook. The call highlighted a mid-single-digit revenue growth of 6%, excluding COVID and donor screening, driven by a 7% increase in their labs business and 4% growth in immunohematology. Adjusted EBITDA margin improved by 450 basis points year-over-year, resulting in a 68% increase in adjusted diluted EPS. The company maintained its full-year guidance with expected revenue between $2.6 billion and $2.81 billion, and adjusted EBITDA of $575 million to $615 million. QuidelOrtho aims to offset anticipated tariff impacts of $30 million to $40 million through cost-saving initiatives and strategic mitigations, expecting $50 million in cost savings in the first half of 2025. Additionally, they project COVID revenue of $110 million to $140 million, with strong flu sales contributing to 18% year-over-year growth. The company is also focused on completing the clinical trial for their Savanna respiratory panel, aiming for an FDA submission in the summer, while continuing to expand their global operating footprint and manufacturing capabilities to support business growth.QuidelOrtho Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
QuidelOrtho Strengthens Board with Experienced Healthcare CEOs
Positive
Dec 10, 2024
QuidelOrtho Corporation has announced the appointment of veteran healthcare CEOs John R. Chiminski and R. Scott Huennekens as independent directors to its board, aiming to leverage their extensive industry experience and financial acumen. This move aligns with QuidelOrtho’s strategy to bolster its leadership as it continues to innovate and drive growth in the in vitro diagnostic market. The new appointments are expected to enhance the company’s transformational strategy and shareholder value.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.