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QuidelOrtho (QDEL)
NASDAQ:QDEL
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QuidelOrtho
(NASDAQ:QDEL)
46Neutral
QuidelOrtho (QDEL) vs. S&P 500 (SPY)
Market Cap
$2.30B
Dividend YieldN/A
Average Volume (3M)814.33K
Price to Earnings (P/E)―
Beta (1Y)0.97
Revenue Growth-7.03%
EPS Growth-20233.78%
CountryUS
Employees6,600
SectorHealthcare
Sector Strength78
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-30.28
Shares Outstanding67,446,540
10 Day Avg. Volume902,354
30 Day Avg. Volume814,325
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.87
Price to Cash Flow (P/CF)9.50
P/FCF Ratio5.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$60.00Price Target Upside84.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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
32.49
Price Trends
39.46
Negative
40.70
Negative
40.33
Negative
Market Momentum
-1.48
Negative
34.26
Neutral
30.14
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 32.49 is below the 20-day moving average (MA) of 35.81, below the 50-day MA of 39.46, and below the 200-day MA of 40.33, indicating a bearish trend. The MACD of -1.48 indicates Negative momentum. The RSI at 34.26 is Neutral, neither overbought nor oversold. The STOCH value of 30.14 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 0 New Risks
QuidelOrtho Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $18.94B | 22.26 | 13.24% | 1.76% | 6.70% | 2.56% | |
73 Outperform | $19.54B | 26.41 | 9.37% | 1.23% | 0.83% | 89.55% | |
70 Outperform | $182.21B | 29.20 | 13.15% | 0.34% | 0.05% | 6.87% | |
67 Neutral | $13.84B | 19.52 | 15.78% | ― | 1.75% | 50.25% | |
49 Neutral | $6.73B | ― | -24.09% | ― | -3.92% | -202.80% | |
48 Neutral | $6.86B | 1.11 | -50.22% | 2.47% | 16.71% | 1.53% | |
46 Neutral | $2.30B | ― | -50.74% | ― | -7.03% | -20233.78% |
* Healthcare Sector Average
Performance Comparison
QDEL
QuidelOrtho
32.49
-10.21
-23.91%
BIO
Bio-Rad Laboratories
234.75
-89.84
-27.68%
HOLX
Hologic
61.69
-16.29
-20.89%
LH
Labcorp Holdings
233.46
24.85
11.91%
DGX
Quest Diagnostics
170.63
41.97
32.62%
TMO
Thermo Fisher
470.03
-107.75
-18.65%
QuidelOrtho Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: -18.65% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment. While there are significant operational highlights such as growth in the labs business, cost reduction initiatives, and stable performance in key markets like China, challenges persist with a decrease in total revenue, particularly in North America and cardiac products. The company is focused on cost savings and margin expansion, pointing to a strategic direction towards profitability amidst declining revenues in certain sectors.Highlights
Solid Labs Business Growth
The Labs business, which constitutes about 50% of the company's total revenues, achieved a growth of 4% on a reported and constant currency basis, excluding COVID and non-core revenue, demonstrating a durable and predictable business model.
Immunohematology and China Growth
Immunohematology business continued stable growth of 4% during the fourth quarter. China grew by 11% in the fourth quarter, driven by strong labs performance.
Cost Reduction Initiatives
Cost saving initiatives are projected to bring $50 million in the first half of 2025 and an additional $30 million to $50 million in savings primarily related to procurement.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA for the fourth quarter 2024 was $150 million with a 21% adjusted EBITDA margin. The company aims for a 250 basis point improvement in 2025.
Lowlights
Revenue Decline in Q4
Total reported revenue in Q4 2024 was $708 million, which decreased by 4% compared to the prior year period due to lower year-over-year COVID and flu revenues.
Cardiac Revenue Decline
Cardiac revenue declined by 9% in Q4, primarily related to order timing in North America. For the full year, cardiac revenue was down approximately 2%.
Gross Profit Margin Decrease
Fourth quarter 2024 adjusted gross profit margin was 47% versus 52% in the prior year period, primarily driven by higher COVID and flu sales in the prior year.
Challenges in North America
North America revenue declined by 11% compared to the prior year period due to the anticipated year-over-year decline in respiratory revenue and timing of cardiac sales.
Company Guidance
During the QuidelOrtho conference call for Q4 and full year 2024 financial results, the company provided guidance for 2025, projecting total reported revenue between $2.6 billion and $2.81 billion. Adjusted EBITDA is expected to range from $575 million to $615 million, translating to a 22% adjusted EBITDA margin, marking a 250 basis point improvement from 2024. The guidance assumes $30 million to $50 million in incremental cost savings, predominantly from procurement initiatives. For respiratory revenue, the company anticipates a $50 million to $55 million test market, with over 50% of flu revenue derived from flu COVID combo tests, and COVID revenue is projected at $110 million to $140 million. The adjusted diluted EPS is forecasted between $2.07 and $2.57, with an anticipated foreign currency exchange impact of $55 million. The company also expects a full year effective tax rate of 24% and aims for free cash flow conversion of 25% to 30% of adjusted EBITDA. The company emphasized its focus on operational efficiency and cost structure improvements to drive long-term growth and profitability.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.