Core Viewpoint - QuidelOrtho Corporation is refocusing its molecular diagnostics strategy by planning to acquire full ownership of LEX Diagnostics for approximately $100 million after FDA clearance and discontinuing the development of its Savanna platform [1][4][6] Company Strategy - The intended acquisition of LEX Diagnostics aims to strengthen QuidelOrtho's position in the rapidly growing point-of-care molecular diagnostics market [4][5] - The decision to discontinue the Savanna platform development is based on recent clinical trial results and a strategic review of market opportunities [5][6] LEX Diagnostics Overview - LEX Diagnostics specializes in molecular diagnostics, offering ultra-fast testing capabilities that can deliver positive results in about six minutes for Flu A, Flu B, and COVID-19 [3] - The technology integrates into point-of-care workflows, providing high sensitivity comparable to PCR testing at competitive prices [3] Financial Guidance - QuidelOrtho is maintaining its fiscal 2025 financial guidance as previously provided, indicating stability in its financial outlook despite the strategic changes [7]

Company Overview - QuidelOrtho Corporation, based in San Diego, CA, specializes in in-vitro diagnostics technologies for point-of-care settings, clinical labs, and transfusion medicine, selling products directly to end users and distributors [11] Investment Ratings - QuidelOrtho is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid overall performance [12] - The company has a Momentum Style Score of B, with shares increasing by 7.1% over the past four weeks [12] Earnings Estimates - Two analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $2.35 per share [12] - QuidelOrtho has an average earnings surprise of 70.8%, suggesting strong performance relative to expectations [12] Investment Considerations - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, QuidelOrtho is recommended for investors' consideration [13]

Company Overview - QuidelOrtho Corporation, based in San Diego, CA, specializes in in-vitro diagnostics technologies for point-of-care settings, clinical labs, and transfusion medicine [11] - The company sells products directly to end users and distributors for professional use in various healthcare settings, including hospitals, clinical laboratories, and pharmacies [11] Investment Potential - QuidelOrtho is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating strong potential for growth [12] - The company has a Growth Style Score of A, forecasting a year-over-year earnings growth of 27% for the current fiscal year [12] - Recent upward revisions in earnings estimates by analysts have led to an increase in the Zacks Consensus Estimate to $2.35 per share, reflecting a positive outlook [12] - QuidelOrtho has demonstrated an average earnings surprise of 70.8%, suggesting strong performance relative to expectations [12] Summary of Style Scores - The VGM Score combines value, growth, and momentum characteristics, making it a comprehensive indicator for assessing stocks [6] - The Growth Style Score focuses on a company's financial strength and future outlook, which is particularly relevant for QuidelOrtho given its projected earnings growth [4] - The combination of a solid Zacks Rank and high Style Scores positions QuidelOrtho as a noteworthy option for investors [13]

Company Overview - QuidelOrtho Corporation, based in San Diego, CA, specializes in in-vitro diagnostics technologies for point-of-care settings, clinical labs, and transfusion medicine, selling products directly to end users and distributors [11] Investment Ratings - QuidelOrtho is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of A, indicating a solid position in the market [12] - The company has a Growth Style Score of A, forecasting a year-over-year earnings growth of 27% for the current fiscal year [12] Earnings Estimates - Two analysts have revised their earnings estimates upwards in the last 60 days for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.01 to $2.35 per share [12] - QuidelOrtho boasts an average earnings surprise of 70.8%, suggesting strong performance relative to expectations [12] Investment Potential - With a solid Zacks Rank and top-tier Growth and VGM Style Scores, QuidelOrtho is recommended for investors looking for growth opportunities [13]

I may buy or sell interests in any company mentioned over the next 72 hours. This is my second QuidelOrtho Corporation ( QDEL ) article after 07/2023's QuidelOrtho: Mapping A Future As Covid Revenues Move To Endemic Phase. In " Mapping ," I was optimistic despite the heavy falloff of Writing under the pseudonym "out of ignorance", I very much regard investing as a learning process. Investing failures are tuition paid. Investing successes enter the trove of lessons learned. In my Seeking Alpha articles I sha ...

Core Viewpoint - QuidelOrtho Corporation reported strong adjusted earnings per share (EPS) of 74 cents for Q1 2025, reflecting a 68.2% year-over-year increase and surpassing the Zacks Consensus Estimate by 27.6% [1] Financial Performance - Revenues for Q1 2025 were $692.8 million, a decrease of 2.6% year-over-year, but slightly above the Zacks Consensus Estimate by 0.3% [2] - Respiratory revenues were $119.8 million, down 12.8% year-over-year, while Non-Respiratory revenues were $573 million, down 0.1% but up 1.7% at constant exchange rates [2] - Adjusted gross profit improved 2.7% year-over-year to $346.9 million, with an adjusted gross margin of 50.1%, an increase of 260 basis points [9] - Adjusted operating profit totaled $107.6 million, a 36% improvement from the prior year, with an adjusted operating margin of 15.5%, up 440 basis points [10] Business Unit Performance - Labs revenues were $373.1 million, up 4.5% year-over-year [4] - Immunohematology revenues were $128.5 million, up 1.2% year-over-year [5] - Donor Screening revenues were $12.8 million, down 61.6% year-over-year [5] - Point of Care revenues were $170.8 million, down 8.5% year-over-year [5] - Molecular Diagnostics revenues totaled $7.6 million, up 5.6% year-over-year [6] Geographical Performance - North America revenues were $406.7 million, down 6.3% year-over-year [7] - EMEA revenues were $88.9 million, up 4.8% year-over-year [7] - Revenues from China were $75 million, down 1.4% year-over-year [8] - Other regions generated $122.2 million, up 5.2% year-over-year [8] Financial Position - Cash and cash equivalents at the end of Q1 2025 were $127.1 million, up from $98.3 million at the end of 2024 [11] - Total debt at the end of Q1 2025 was $2.49 billion, slightly up from $2.48 billion at the end of 2024 [11] - Net cash provided by operating activities was $65.6 million, compared to a net cash used of $0.7 million a year ago [11] Guidance and Outlook - QuidelOrtho expects total revenues for 2025 to be in the range of $2.60 billion to $2.81 billion, with a consensus estimate of $2.70 billion [12] - The company anticipates stable growth across most business lines, particularly in Labs and Immunohematology, with expected COVID-19 revenues of $110-$140 million for 2025 [13][14] - Management expressed confidence in mitigating a projected gross tariff impact of $30–$40 million in 2025 through various strategies [17]

Company Performance - QuidelOrtho reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.58 per share, and up from $0.44 per share a year ago, representing an earnings surprise of 27.59% [1] - The company posted revenues of $692.8 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.30%, although this is a decrease from year-ago revenues of $711 million [2] - Over the last four quarters, QuidelOrtho has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance - QuidelOrtho shares have declined approximately 41.8% since the beginning of the year, in contrast to the S&P 500's decline of 4.7% [3] - The current Zacks Rank for QuidelOrtho is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $621.72 million, and for the current fiscal year, it is $2.31 on revenues of $2.7 billion [7] - The outlook for the Medical - Products industry, to which QuidelOrtho belongs, is currently in the bottom 28% of over 250 Zacks industries, which may impact the stock's performance [8]

May 7, 2025 QuidelOrtho First Quarter 2025 Financial Results QuidelOrtho – Proprietary & Confidential. | © 2025. All Rights Reserved. 2 $160M 2 Total Revenue $693M North America 57% Other 19% China 12% EMEA 12% Recurring 82% Business Unit Geography Category Labs 51% Point of Care 26% 4 Adjusted EBITDA 23% Margin2 3 Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements: This presentation of QuidelOrtho Corporation ("QuidelOrtho" or the "Company") contains "forward-looking stat ...

Financial Data and Key Metrics Changes - Total reported revenue for Q1 2025 was $693 million, down from $711 million in the prior year, primarily due to lower COVID and donor screening revenue [18] - Excluding COVID and donor screening, the company achieved a mid single-digit revenue growth of 6% [18] - Adjusted EBITDA margin improved by 450 basis points year over year to 23%, with adjusted diluted EPS increasing by 68% to $0.74 [24][25] Business Line Data and Key Metrics Changes - Labs business, accounting for 54% of total revenue, grew by 7%, driven by clinical chemistry and immunoassay testing [10] - Immunohematology business grew by 4%, maintaining its global leadership position [10] - Point of Care business represented 25% of Q1 revenue and grew by 8% excluding COVID, with strong flu sales leading to an 18% year-over-year growth [10] - Molecular Diagnostics business grew by 11% excluding COVID, with ongoing clinical trials for the Savanna respiratory panel [11] Market Data and Key Metrics Changes - Revenue from the "Other" region (Japan, Asia Pacific, Latin America) grew by 12%, driven by a 17% increase in Labs revenue [19] - North America revenue declined by 6% due to lower COVID revenue and donor screening wind down, but grew by 5% when excluding these factors [19] - Europe, Middle East, and Africa grew by 9%, while China revenue remained flat, primarily due to order timing and decreased Triage revenue [20] Company Strategy and Development Direction - The company is focused on a narrow set of strategic initiatives, including increasing platform content and utility, expanding margins, and enhancing commercial execution [11] - Plans to realize $100 million in annualized cost savings, with $50 million expected in the first half of 2025 [12] - The company aims to maintain its manufacturing footprint and continue investing in U.S.-based manufacturing and R&D [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and operational discipline, highlighting strong Q1 results and ongoing initiatives [9] - The company anticipates potential tariff impacts of $30 million to $40 million in 2025 but believes mitigation plans will offset these impacts [15] - Full-year 2025 financial guidance remains unchanged, with expectations for total reported revenue between $2.6 billion and $2.81 billion [27] Other Important Information - The company has invested nearly $1 billion in U.S.-based manufacturing and R&D over the past three years [13] - Adjusted free cash flow for Q1 2025 was $47 million, representing 29% of adjusted EBITDA [26] - The company plans to refinance its debt in the second half of 2025 or early 2026, depending on market conditions [31] Q&A Session Summary Question: Can you elaborate on the tariff impact and pricing actions? - Management indicated that selective pricing actions are being considered to offset tariff impacts, but competitive market conditions must be taken into account [36][37] Question: Will tariff impacts affect long-term manufacturing plans? - Management does not expect changes to the overall manufacturing footprint, emphasizing the importance of their global manufacturing network [38] Question: How confident is the company in mitigating tariff impacts? - Management expressed confidence in fully mitigating tariff impacts through various actions, including cost reductions and realigning inventories [43] Question: What underpins the confidence in China's growth rate? - Confidence in mid to high single-digit growth in China is based on strong performance in labs and immunohematology, despite some softness in Triage sales [49] Question: What is the status of the Savanna program? - The company is focused on completing the RBP4x submission to the FDA and is not speculating on outcomes beyond that [45][61] Question: How is the respiratory sales performance impacting guidance? - Management expects to maintain the guidance range for COVID revenue despite a decline, as flu sales have been strong [56][58]

Financial Data and Key Metrics Changes - Total reported revenue for Q1 2025 was $693 million, down from $711 million in the prior year, primarily due to lower COVID and donor screening revenue [19][20] - Excluding COVID and donor screening, revenue growth was 6%, driven by the labs business and a strong flu season [7][19] - Adjusted EBITDA was $160 million, compared to $132 million in the prior year, with an adjusted EBITDA margin of 23%, reflecting a 450 basis point improvement [25][28] - Adjusted diluted EPS increased by 68% year over year to $0.74 [25] Business Line Data and Key Metrics Changes - Labs business, accounting for 54% of total revenue, achieved 7% growth, with strong performance in clinical chemistry and immunoassay testing [8][20] - Immunohematology business grew by 4%, maintaining its global leadership position [8][22] - Point of Care business represented 25% of Q1 revenue and grew 8% excluding COVID [8] - Molecular Diagnostics business grew 11% excluding COVID, with ongoing clinical trials for the Savanna respiratory panel [10] Market Data and Key Metrics Changes - Revenue from the "Other" region (Japan, Asia Pacific, Latin America) grew by 12%, driven by a 17% increase in Labs revenue [20] - North America revenue declined by 6% due to lower COVID revenue and the wind down of donor screening, but grew by 5% excluding these factors [20] - Europe, Middle East, and Africa grew by 9%, supported by labs and immunohematology contributions [20] - China revenue was flat year over year, with labs revenue growing by 2% [21] Company Strategy and Development Direction - The company is focused on a narrow set of strategic initiatives, including increasing platform utility, expanding margins, and enhancing commercial execution [10][11] - Plans to realize $100 million in annualized cost savings, with $50 million expected in the first half of 2025 [11][28] - The company aims to maintain a recurring revenue model, with over 90% of sales from consumables [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategy and operational discipline, highlighting strong Q1 results and ongoing initiatives [6][7] - The company is navigating a dynamic macro environment, with expected tariff impacts of $30 million to $40 million in 2025, which they believe can be fully mitigated [14][28] - Full year 2025 financial guidance remains unchanged, with expectations for total reported revenue between $2.6 billion and $2.81 billion [28][30] Other Important Information - The company has invested nearly $1 billion in U.S.-based manufacturing and R&D over the past three years [12] - Adjusted free cash flow for Q1 was $47 million, representing 29% of adjusted EBITDA [26] Q&A Session Summary Question: Can you elaborate on the tariff impact and pricing actions? - Management indicated that selective pricing actions are being considered to offset tariffs, but competitive market conditions must be taken into account [37][38] Question: Will tariff impacts affect long-term manufacturing plans? - Management does not expect changes to the overall manufacturing footprint, emphasizing the importance of their global manufacturing network [39] Question: Can you quantify tariff exposures and confidence in offsets? - Most products are manufactured in the U.S., with the largest tariff impacts on immunoassay products from the U.K. Management is confident in their mitigation strategies [43][45] Question: What underpins confidence in China's growth rate? - Despite some softness in Triage sales, strong growth in labs and immunohematology supports the mid to high single-digit growth target for China [49][51] Question: What is the status of the Savanna program? - The company is focused on completing the RBP4x submission to the FDA and remains committed to the molecular diagnostics segment [46][62] Question: Are there timing impacts from mitigation efforts? - Management does not anticipate significant timing impacts from mitigation actions, although some softness in China revenue is expected in Q2 due to shipment delays [70][71]