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QuidelOrtho (QDEL)
NASDAQ:QDEL
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QuidelOrtho
(NASDAQ:QDEL)
Rating:58Neutral
Price Target:
$30.00
▲(4.60% Upside)
Positive Factors
Cost Management
The company announced additional cost savings initiatives, which are expected to enhance financial performance.
Earnings
QuidelOrtho’s second-quarter results met or exceeded expectations as full-year guidance for revenue and earnings were maintained.
Negative Factors
Revenue Decrease
There is a decrease in first-quarter revenue expectations primarily driven by a reduction in COVID and flu revenue.
Tariff Challenges
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
$1.95B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-3.00%
EPS Growth76.48%
CountryUS
Employees6,600
SectorHealthcare
Sector Strength53
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)0.12
Shares Outstanding67,900,470
10 Day Avg. Volume1,308,194
30 Day Avg. Volume1,373,381
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap2.36
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit3.68
Enterprise Value/Ebitda20.64
Forecast
1Y Price Target
$41.50Price Target Upside44.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
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: |
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 challenges with profitability due to recent losses, affecting income statement scores. However, improvements in debt management and cash flow stability provide some optimism for financial recovery. The company's 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 | 2.74B | 2.78B | 3.00B | 3.27B | 1.70B | 1.66B |
| Gross Profit | 1.25B | 1.29B | 1.49B | 1.94B | 1.28B | 1.35B |
| EBITDA | 222.70M | -1.46B | 607.00M | 1.09B | 955.44M | 1.09B |
| Net Income | -466.40M | -2.05B | -10.10M | 548.70M | 704.20M | 810.29M |
Balance Sheet | ||||||
| Total Assets | 6.38B | 6.42B | 8.56B | 8.86B | 2.43B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 151.70M | 98.30M | 167.30M | 345.00M | 828.50M | 489.94M |
| Total Debt | 2.79B | 2.68B | 2.61B | 2.85B | 139.30M | 108.50M |
| Total Liabilities | 3.59B | 3.44B | 3.56B | 3.92B | 501.00M | 538.46M |
| Stockholders Equity | 2.79B | 2.98B | 5.01B | 4.93B | 1.93B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 123.30M | -112.10M | 70.90M | 744.40M | 513.14M | 564.84M |
| Operating Cash Flow | 200.40M | 83.00M | 280.20M | 885.30M | 805.87M | 629.76M |
| Investing Cash Flow | -183.60M | -149.90M | -187.60M | -1.64B | -319.53M | -63.32M |
| Financing Cash Flow | 25.70M | 48.80M | -265.80M | 252.00M | -173.18M | -130.28M |
QuidelOrtho Technical Analysis
Positive
28.68
Price Trends
27.03
Positive
28.32
Positive
34.11
Negative
Market Momentum
0.57
Negative
59.56
Neutral
63.32
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 28.68 is above the 20-day moving average (MA) of 26.83, above the 50-day MA of 27.03, and below the 200-day MA of 34.11, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 63.32 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $40.09B | 28.80 | 25.86% | 0.79% | 9.84% | 37.48% | |
75 Outperform | $14.85B | 27.70 | 11.38% | ― | 1.28% | -17.73% | |
68 Neutral | $2.62B | 16.60 | 18.27% | ― | 0.91% | 45.81% | |
61 Neutral | $6.78B | ― | -0.68% | ― | 8.73% | -245.82% | |
58 Neutral | $1.95B | ― | -14.80% | ― | -3.00% | 76.48% | |
54 Neutral | $8.00B | 116.65 | -20.54% | ― | -8.36% | -669.36% | |
51 Neutral | $7.95B | -0.40 | -41.67% | 2.21% | 22.29% | -1.85% |
* Healthcare Sector Average
Performance Comparison
QDEL
QuidelOrtho
28.68
-16.00
-35.81%
HAE
Haemonetics
54.38
-18.35
-25.23%
HOLX
Hologic
66.76
-15.93
-19.26%
MASI
Masimo
147.19
35.83
32.17%
RGEN
Repligen
124.56
-19.93
-13.79%
RMD
Resmed
277.05
29.64
11.98%
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.