QuidelOrtho Analysts Cut Their Forecasts After Downbeat Results

QuidelOrtho Corp QDEL posted weaker-than-expected results for its fourth quarter on Tuesday.

The company reported fourth-quarter 2023 adjusted EPS of $1.17, missing the consensus of $2.05. The company reported sales of $742.60 million, missing the consensus estimate of $796.91 million, according to data from Benzinga Pro.

QuidelOrtho expects fiscal year 2024 revenues of $2.76 billion-$3.07 billion versus the consensus of $2.948 billion, including non-respiratory revenue of $2.30 billion-$2.34 billion and respiratory revenue of $460 million – $730 million. The company expects adjusted EPS of $2.40-$3.07 compared to the consensus of $5.07, with adjusted EBITDA guidance of $565 million- $720 million.

"In our first full year operating as a combined company, we successfully laid the foundation for building a broader-based diagnostics company poised for future growth. We are encouraged by the growth in our non-respiratory business, the market share gains we are seeing in our respiratory portfolios, and the U.S. launch of our Savanna molecular platform. Our competitive positions are strong across the globe, and we believe our pipeline of innovative new products and menu expansions will continue to strengthen pull-through across our growing installed base," said Douglas Bryant, President and Chief Executive Officer of QuidelOrtho.

QuidelOrtho shares fell 29.3% to trade at $47.19 on Wednesday.

These analysts made changes to their price targets on QuidelOrtho after the company reported quarterly results.

• Raymond James cut the price target on QuidelOrtho from $100 to $76. Raymond James analyst Andrew Cooper downgraded the stock from Strong Buy to Outperform.
• RBC Capital slashed the price target on QuidelOrtho from $130 to $81. RBC Capital analyst Conor McNamara maintained an Outperform rating.
• Craig-Hallum analyst Alexander Nowak downgraded QuidelOrtho from Buy to Hold.
• William Blair analyst Andrew Brackmann downgraded QuidelOrtho from Outperform to Market Perform.

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